#USChinaTradeTalks

Key Developments in US-China Trade Talks

1. Location and Focus: High-level talks resumed in London on June 10, 2025, for a second day, centered on easing tensions over rare earth minerals and technology export controls. China's near-monopoly on rare earths (critical for EVs, electronics, and defense) has disrupted global supply chains, prompting urgent negotiations .

2. Delegations: The U.S. team includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick (key due to his role in export oversight), and Trade Representative Jamieson Greer. China’s delegation is led by Vice Premier He Lifeng .

3. Progress: After Day 1, U.S. officials described talks as "fruitful" but provided no specifics. President Trump noted "good reports" but acknowledged "China’s not easy." Temporary rare earth export licenses were granted to top U.S. automakers following a recent Trump-Xi call, though long-term solutions remain unresolved .

4. Economic Stakes:

- China’s exports to the U.S. plummeted 34.5% in May (sharpest drop since COVID-19), heightening pressure for a deal .

- Average tariffs stand at 51% (U.S.) and 32.6% (China). The 90-day tariff pause from May’s Geneva deal expires in August, risking renewed tariffs .

5. Broader Impact: Investors reacted cautiously, with the S&P 500 edging up slightly. Outcomes could avert global supply shocks but hinge on resolving rare earth access and tech disputes .