US-China trade talks kicked off in London on June 9, 2025, at Lancaster House, with both nations seeking to stabilize their economic relationship after a series of tit-for-tat tariffs. The talks come after President and Chinese President held their first publicly announced phone call since Trump returned to the White House, which reportedly had a "very positive conclusion".
*Key Issues on the Table:*
- *Rare Earth Shipments*: The US wants China to resume shipments of rare earth minerals crucial for electric vehicle batteries and other goods. China has slowed down these shipments since Trump's "Liberation Day" tariffs in April.
- *Tariffs*: The two nations agreed to slash tariffs for 90 days after talks in Switzerland, but differences persist. The US had imposed tariffs of up to 145% on Chinese goods, prompting China to retaliate with countermeasures of up to 125% on US goods.
- *Immigration and Technology*: China wants the US to relax immigration curbs on students and restrictions on access to advanced technology, including microchips. The US also needs to make it easier for Chinese tech providers to access US consumers.
*Recent Trade Data:*
- China's exports to the US fell 12.7% in May from the previous month, with China shipping $28.8 billion worth of goods, down from $33 billion in April ¹.
*What's Next:*
- China and the US will continue negotiations to address their trade differences. China is also engaging with other trading partners, including Japan, South Korea, and Canada, to build a united front against Trump's tariffs. A summit between China and the EU is expected in July to mark 50 years of diplomatic ties ².