#USChinaTradeTalks 🗣️ Key Developments

Second-day negotiations underway (June 10–11, London): Trade delegations from the U.S. (led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and USTR Jamieson Greer) and China (headed by Vice Premier He Lifeng and Commerce Minister Wang Wentao) are continuing discussions. The focus remains on easing export controls—especially rare earth minerals—put in place after the Geneva truce lapsed .

Shanghai to U.S. exports plunged ~35% in May: The sharpest decline since early 2020, highlighting the urgency for both sides to reach a deal .

Rare earths at center stage: The U.S. is pushing for China to normalize exports of rare earth metals and magnets (essential to EVs, semiconductors, aerospace), while China is seeking semiconductor and advanced tech export-relief in return .

Positive tone but cautious markets: There’s optimism—Bolstered by an earlier Trump–Xi phone call—yet markets remain hesitant, awaiting concrete commitments. The U.S. dollar holds steady amid anticipation of upcoming U.S. CPI data .

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📊 Why It Matters

Issue Implication

U.S. Manufacturers Autos, aerospace, and electronics firms are facing production risks without rare earth access

Global Supply Chains Continued export restrictions could disrupt global EV/autoparts and chip sectors

Macro Markets Volatility persists in forex, equities, and bond markets as investors await results

Political Stakes Both nations are under pressure—China to protect growth and jobs, the U.S. to defend high-tech leadership and inflation control