The United States and China are set to resume trade negotiations in London, marking a significant moment in ongoing efforts to stabilize relations between the world’s two largest economies. The meeting follows a phone call last week between President Donald Trump and Chinese President Xi Jinping, which Trump described as a “very good talk” that led to renewed diplomatic engagement.
The US delegation will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. China will be represented by Vice Premier He Lifeng, who will be in the UK from June 8 to 13 for talks under the “China-US economic and trade mechanism.”
These developments come in the wake of a temporary truce agreed in May during talks in Switzerland, which reduced US tariffs on Chinese goods to 30% and Chinese tariffs on US imports to 10%. China also pledged to lift restrictions on critical mineral exports, a key sticking point in the dispute.
Despite initial optimism, the truce has since been strained. Both sides have accused each other of violating the agreement. Trump recently claimed China had “totally violated” the terms, while Beijing said the US had “severely violated” the deal. The US has criticized China for failing to fully resume exports of rare earth elements, which are essential for American industries including automotive and tech.
The trade war, which erupted in February, had seen tariffs climb as high as 145% before the May reset. China’s dominance in rare earth mining producing 69% of global supply makes this issue particularly sensitive. Swetha Ramachandran, a fund manager at Artemis, noted that the presence of Lutnick, who shaped tough US tech export policies, could add weight to discussions focused on technology and minerals.
China’s latest trade data indicates weak momentum, with exports rising 4.8% year-on-year in May, but imports falling 3.4%, well below expectations. This economic backdrop adds urgency to the talks.
With a 90-day window from the May accord to finalize a comprehensive trade deal, the London negotiations could determine whether this fragile thaw leads to long-term resolution or a renewed escalation.
