LONDON
A new round of trade talks between the US and China, aiming to reach a deal, started Monday in London.
In a bid to resolve months of tensions between the two countries, a senior US delegation including Commerce Secretary Howard Lutnick and Chinese representatives – prominently featuring Vice Premier He Lifeng, Beijing’s top trade negotiator – met at Lancaster House in the British capital.
Along with tariffs and trade restrictions, particularly Beijing’s exports of rare earths as well as China’s access to US products, including computer chips, are expected to be top issues during the first meeting of the China-US Economic and Trade Consultative Mechanism.
The meeting followed US President Donald Trump’s announcement on Friday that US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer as well as Lutnick will take part in the talks.
A day earlier, Trump spoke on the phone with Chinese President Xi Jinping, with Trump saying later that the conversation “resulted in a very positive conclusion for both countries” as both nations seek to resolve an expansive trade dispute.
The US had long wanted a call between the two to prove that Trump’s aggressive trade strategy was producing dividends, with other countries wanting to reach deals.
Kevin Hassett, director of the White House National Economic Council, said that he expects Beijing to ramp up rare earth mineral exports to American markets.
The US expectation was that “immediately after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters,” he said in a Monday interview.
He said during the call the presidents went into “many topics,” including an agreement to release “the magnets and rare earths that we need throughout the economy.”
Trade talks stalled shortly after a May 12 agreement between the two largest economies to reduce tariff rates.
Under the deal, Washington and Beijing agreed to a 90-day suspension of most tariffs and to roll back measures imposed since early April.
