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US and China Set to Resume Trade Talks in London

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US and China Set to Resume Trade Talks in London

by Daisy D.
06/09/2025
in Trade Policies

By supplychainreport

A new round of trade discussions between the United States and China is scheduled to take place in London on Monday, as both nations seek to advance ongoing efforts toward a formal economic agreement.

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On Friday, U.S. officials announced that a senior delegation—including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer—will meet with their Chinese counterparts. Over the weekend, China confirmed that Vice Premier He Lifeng will lead its delegation and attend the talks, which are expected to focus on key trade mechanisms between the two economies.

The meetings follow a recent phone conversation between the leaders of the two countries, described by U.S. officials as “constructive.” According to official sources, the leaders expressed interest in building on a temporary agreement reached in May, which included reductions in tariff rates and commitments to improve access to essential mineral supplies.

Under the earlier accord, the U.S. agreed to lower tariffs on certain Chinese products to 30%, while China reduced levies on U.S. goods to 10%. China also pledged to ease export restrictions on critical minerals—a move closely watched by sectors such as automotive and electronics manufacturing.

The agreement set a 90-day window for negotiating a more permanent trade framework. However, recent public statements from both sides indicate ongoing challenges. U.S. officials have expressed concerns about the pace of mineral exports, while Chinese representatives have pointed to unresolved policy measures affecting bilateral trade.

Over the weekend, China’s Ministry of Commerce confirmed it had approved select applications for rare earth export licenses, although specific details were not disclosed. U.S. National Economic Council Director Kevin Hassett said that export activity has resumed, but not yet at levels anticipated in previous discussions.

Meanwhile, newly released data from China showed that exports in May grew by 4.8% year-over-year, while imports declined by 3.4%, underperforming analyst expectations. Analysts are watching the upcoming London talks closely for signs of renewed momentum.

The bilateral discussions are scheduled as part of the ongoing “China–U.S. economic and trade mechanism,” and Vice Premier He is expected to remain in the UK until June 13 for further engagements.

#SupplyChainNews #TradeTalks #USChinaRelations #GlobalTradeUpdate #RareEarthMaterials

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