📰 Highlights
High-level trade talks between China and the United States kick off in London
Senior U.S. and Chinese trade officials held talks in London on June 9 at Lancaster House. The two sides discussed issues including rare earth exports, tariffs and access to advanced technologies.
This round of talks is the second high-level consultation following the Geneva interim agreement in May, aimed at easing tensions and promoting concrete compliance actions.
Key issue: resumption of rare earth exports
The U.S. delegation, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, focused on whether China would immediately resume exports of rare earths, which are important raw materials for the automotive and aerospace industries.
Despite the "positive conclusion" of the call between the two presidents and China's agreement to temporarily open relevant export licenses, analysts remain cautious about a long-term solution.
Market reaction and economic background
International gold and oil prices rose slightly (gold price rebounded to about $3,300/ounce) as the market expected that the negotiations would help ease global trade tensions and boost demand.
In addition, China's exports to the United States fell by 34-35% year-on-year in May 2025, the heaviest drop since the 2020 COVID-19 pandemic, indicating that the trade interaction between the two countries is under great pressure.
UK official role
Chinese Vice Premier He Lifeng is visiting London, during which he will meet with British Chancellor of the Exchequer Rachel Reeves, seeking to deepen economic dialogue between China and the UK and between China and the United States.
🔍 Interpretation
1. The core of the negotiations is still focused on rare earth exports: this is the primary demand of the United States, which will help ease the domestic supply chain crisis.
2. Short-term results have emerged: gold and oil prices rose before the negotiations, showing market optimism.
3. Long-term structural changes are difficult: Analysts point out that this negotiation may lead to a temporary "handshake agreement", but the two sides still have major policy differences in terms of tariffs and economic systems.
