#USChinaTradeTalks

US-China trade talks are ongoing in London, with the two countries aiming to ease tensions over shipments of technology and rare earth elements. The talks, which started on Monday, will continue into a second day, with US officials indicating a willingness to remove restrictions on some tech exports in exchange for assurances that China will ease limits on rare earth shipments.

*Key Points of Discussion:*

- *Rare Earth Shipments*: The US has expressed concerns over China's slow release of rare earth shipments, which are crucial for goods like electric vehicle batteries.

- *Tariff Reduction*: The US and China had previously agreed to reduce tariffs on each other's exports, but the US has accused China of violating this deal.

- *Tech Exports*: The US is expected to ease some restrictions on tech exports, including microchips, in a potential breakthrough.

- *Immigration Curbs*: China wants the US to rethink immigration curbs on students and restrictions on access to advanced technology ¹ ² ³.

*Market Impact:*

- The USD/CAD pair is trading flat near 1.3700, with easing trade tensions potentially supporting the US dollar.

- The AUD/USD pair is trading around 0.6517, up 0.01% on the day, as trade talks extend into a second round ² ³.

*Next Steps:*

- The talks are expected to continue today, June 10, at 10 am local time in London, with both sides aiming to reach a mutually beneficial agreement.

- The outcome of these talks could have significant implications for global trade and economic stability ¹.