Senior U.S. and Chinese officials convened in London on Monday for trade talks. A key expectation from the U.S. side, according to a top economic advisor to President Trump, is that Beijing would promptly lift its export controls on rare earth minerals as a result of the discussions.
This meeting followed a previous high-level gathering in Geneva in mid-May. The talks occurred after a phone conversation last week between President Trump and Chinese President Xi Jinping, marking their first direct communication since Trump's inauguration for a second term.
The U.S. delegation included Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. They met with a Chinese delegation led by Vice Premier He Lifeng, a close advisor to Xi who oversees economic matters. The talks were scheduled to potentially continue into Tuesday.
Kevin Hassett, director of the National Economic Council, expressed optimism about the meeting's outcome. He suggested in an interview that the talks were likely to conclude with a positive agreement.
Hassett indicated that the U.S. expected an immediate easing of export controls and the release of rare earths in significant quantities following the agreement. This would then allow for negotiations on less significant issues.
The phone call between Trump and Xi took place after both countries had exchanged criticisms regarding alleged violations of a preliminary agreement reached in Geneva. This agreement had established a 90-day truce in their trade war and a commitment to reduce tariffs.
Leading up to the call, the Trump administration voiced frustration over China's slow removal of export controls on critical minerals used in high-tech products, accusing Beijing of not adhering to the initial agreement. China, in turn, criticized the U.S. for implementing "discriminatory measures," including export control guidance on artificial intelligence chips and visa revocations for Chinese students.
China's Commerce Ministry announced that it had approved several export license applications for rare earth-related items, citing global demand from industries like robotics and new energy vehicles. However, specific details were not provided.
China is a major producer of rare earths, mining approximately 70 percent of the world's supply. These minerals are essential for the production of various products, including smartphones and vehicles. In response to U.S. tariffs, Beijing had introduced export controls on several types of rare-earth minerals.
Amid the ongoing trade war, Chinese exports to the United States in May decreased significantly compared to the previous year, while imports from the U.S. also declined, according to customs data.
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