#USChinaTradeTalks

current U.S.–China trade talks in London:

🇺🇸🇨🇳 U.S.–China Trade Talks: A High-Stakes Diplomatic Dance

London, June 9–10, 2025 — Top U.S. and Chinese officials are meeting at Lancaster House in London for a second day of intense negotiations aimed at resolving mounting tensions between the world’s two largest economies (reuters.com).

🔍 Why Now?

Economic Strain: In May, China’s exports to the U.S. plunged 34–35% year‑on‑year—the sharpest drop since the onset of COVID‑19 in February 2020—underscoring how deeply tariffs are inflicting economic stress (ft.com).

Geneva Truce in Jeopardy: A 90‑day agreement reached in Geneva in mid‑May, which paused many tariff hikes, is unraveling. The current round seeks to restore and solidify that fragile calm (reuters.com).

🧩 Core Issues

IssueU.S. PositionChina’s LeverageTariffsPresident Trump has reportedly authorized easing export restrictions (e.g., jet engines) to encourage compromise (axios.com).China continues to feel the impact of U.S. tariffs, which it hopes will stay reduced.Rare EarthsCentral to discussions—U.S. officials demand China resume exports urgently, especially after auto-industry supply disruptions .China holds near-monopolistic control over these materials, a key bargaining chip .Tech & Export ControlsU.S. pressure on semiconductors and AI-related tech is intensifying. Includes negotiation on tightening or relaxing tech curbs .China challenges U.S. claims of technological dominance in areas like AI chips .

📉 Market Pulse

Global markets responded positively:

Asian equities climbed—Nikkei +1%, Kospi +0.9%, Taiex +2%—as hopes grew for tariff relief (apnews.com).

U.S. stocks hovered mixed—slight gains in the Nasdaq; the S&P 500 steadied (apnews.com).

Treasury yields edged lower, and the dollar fluctuated as investors weighed trade outcomes (bloomberg.com).