US–China Hold Second Day of Trade Talks in London
Udumbara
U.S. and Chinese officials met for a second day of economic and trade discussions in London on June 10.
Commerce Secretary Howard Lutnick told reporters that the two sides met all day on June 9 and will likely meet again on June 10.
“They’re going well, and we’re spending lots of time together,” he said.
Lutnick, who manages export controls, joined Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer to meet with their Chinese counterparts.
In an interview with CNBC’s “Squawk Box,” National Economic Council Director Kevin Hassett stated that the United States could lift recent export controls on semiconductors if China accelerated its shipments of rare earths and magnets.
The Chinese regime implemented restrictions on the export of rare earths in April, triggering disruptions to the global supply chain. Still, customs data indicate that Chinese rare earth exports surged by 23 percent in May to a one-year high.
Recent economic data, meanwhile, might put pressure on China to strike a deal. The country’s exports to the United States declined by 34 percent last month, marking the sharpest monthly drop in more than five years.
Tariff Pause
The latest meeting took place nearly a month after the United States and China engaged in the first round of negotiations in Geneva, Switzerland, which resulted in a 90-day trade truce.U.S. President Donald Trump and senior administration officials accused the Chinese regime of violating the May 12 trade agreement and slow-rolling compliance. However, Beijing stated that Washington violated provisions of the deal.
Following a phone call between Trump and Chinese leader Xi Jinping last week, the world’s two largest economies agreed to meet in London.
At a June 9 business roundtable, the president informed the press that meetings were going well and that the aim is to liberalize China’s markets.
“We want to open up China. And if we don’t open up China, maybe we won’t do anything, but we want to open up China,” Trump said. “It'll be a great thing for China, great thing for the rest of the world.”
Speaking to reporters at the White House last week, Trump confirmed that he and Xi exchanged invitations to visit each other in the future.
Any U.S.–China trade arrangement will require further scrutiny, says Ken Mahoney, the CEO at Mahoney Asset Management.
“The devil is always in the details, we will have to see exactly what comes of this as there have been ongoing disputes over various things like critical minerals, tech, student visas, and trade barriers, including export controls,” Mahoney said in a note emailed to The Epoch Times.
U.S. stocks were little changed at the June 10 opening bell, with the benchmark averages flat as investors wait for more details from the meeting.
Asian financial markets were also little changed.
