On May 23, 2025, stacked containers were visible at Yangluo Port in Wuhan, Hubei Province, China, as significant talks were taking place concerning the trade dispute between two of the world's largest economies. Delegations from the United States, including Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer, met with Chinese officials led by Vice Premier He Lifeng at the historical Lancaster House in London.
These meetings follow a recent round of negotiations in Geneva, which had temporarily eased tensions, resulting in a 90-day suspension of more than 100% tariffs imposed by both nations on each other. However, recent trade statistics indicate a significant drop in Chinese exports to the United States, which fell by 35% in May compared to the previous year.
As discussions unfold, sharp exchanges have continued between the two nations over vital issues, including advanced semiconductors crucial for artificial intelligence and the export of rare earth minerals. In light of a recent phone conversation between President Donald Trump and Chinese leader Xi Jinping aimed at improving relations, the focus of the discussions in London may heavily involve rare earths—a concern raised by various global companies due to export licensing requirements imposed by the Chinese government.
The British government, while providing the venue for these critical talks, emphasized its commitment to free trade and the detrimental effects of disputes on international commerce. Despite remaining nonpartisan in the discussions, British officials have engaged with both American and Chinese leaders, expressing support for the ongoing negotiations aimed at fostering better trade relations. U.S. economic adviser Kevin Hassett hinted at a potential resolution surrounding rare earth elements, suggesting a brief yet significant meeting may result from these discussions.
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