#USChinaTradeTalks

🇺🇸🇨🇳 June 2025 Talks in London

High-level delegation meetings: U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer met Chinese Vice‑Premier He Lifeng in London at Lancaster House. The talks aim to build on the 90‑day tariff truce negotiated in Geneva and a positive phone call between Trump and Xi on June 5 .

Key issues on the table:

Rare-earth minerals: The U.S. is pushing China to authorize more exports of critical minerals like neodymium, which are essential for electronics, defense, and EVs. China recently approved some rare-earth licenses, signaling tentative progress .

Semiconductor export controls: U.S. officials are considering easing chip export restrictions to China if tariffs are rolled back. National Economic Council’s Kevin Hassett suggested progress here could lift sentiment in global markets .

Tariff reductions and long-term agreements: Both sides discussed extending the 90‑day pause—during which U.S. tariffs on Chinese goods dropped from 145% to 30%, and Chinese tariffs fell from 125% to 10%—and crafting a more durable resolution .

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📊 Market Reaction & Significance

Market optimism: The Nasdaq rose ~0.3% amid hopes for relaxed semiconductor rules; broader U.S. equity indexes were slightly up, while bond yields eased .

Global supply chain relief: Easing rare-earth restrictions could help European car manufacturers avoid production slowdowns caused by bottlenecks .

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🚧 Ongoing Challenges

Export license delays: Despite recent rare-earth license approvals, overall issuance remains slow—only about 25% of applications are being granted. China retains leverage here .

Tough tone from China’s negotiator: Vice‐Premier He Lifeng is taking a hardline stance, seeking reciprocal concessions and structural reforms like IP protections and technology-transfer commitments .

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🧭 What’s Next?

Continuation of talks: Negotiations are expected to spill into a second day with no immediate breakthrough yet.