The United States and China are set to resume high-level trade negotiations in London on Monday in a bid to maintain a fragile truce, despite rising tensions between the two economic powers.
Leading the U.S. delegation are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, as announced by President Donald Trump on Friday. On the Chinese side, Vice Premier He Lifeng — who led the last round of negotiations in Geneva — will head the delegation, according to China’s foreign ministry.
President Trump expressed optimism ahead of the talks, stating on his Truth Social platform, “The meeting should go very well.” His press secretary, Karoline Leavitt, reinforced the message in an interview with Fox News, saying, “We want China and the United States to continue moving forward with the agreement that was struck in Geneva.”
Although the UK government is hosting the talks, it emphasized that it is not directly involved. A spokesperson stated, “We are a nation that champions free trade” and welcomed the dialogue as a step toward avoiding further escalation.
Recent Tensions and Key Issues
The London talks follow the first official phone call between Trump and Chinese President Xi Jinping since Trump’s return to the White House. Trump described the conversation as “very positive”, while Xi, via state news agency Xinhua, said, “Correcting the course of the big ship of Sino-U.S. relations requires us to steer well and set the direction.”
Tensions have intensified in recent weeks, with Trump accusing China of breaching the tariff-reduction deal agreed upon in Geneva. Leavitt emphasized that compliance with that agreement would be a focal point of the upcoming discussions.
One of the main sticking points is China’s reduced export of rare earth minerals, which are essential for products such as electric vehicle batteries and advanced electronics.
“Rare earth shipments from China to the U.S. have slowed since President Trump’s ‘Liberation Day’ tariffs in April,” noted Kathleen Brooks, research director at XTB. “The U.S. wants shipments restored, while China is pushing for eased restrictions on tech access, student visas, and market entry for Chinese firms.”
Trade War Background
In April, the Trump administration imposed sweeping tariffs—up to 145% on some Chinese goods—which prompted retaliatory measures from Beijing that reached 125% on U.S. exports. A temporary truce was reached in Switzerland, with both sides agreeing to a 90-day reduction in tariffs.
Despite that agreement, trade friction continues. China’s latest export figures, released Monday, show a 12.7% decline in exports to the U.S. in May, dropping to $28.8 billion from $33 billion in April.
China’s Broader Strategy
China is also working to diversify its trade alliances. Talks are ongoing with Japan, South Korea, and most recently Canada. Chinese Premier Li Qiang and Canadian Prime Minister Mark Carney agreed last week to regularize bilateral communication, with discussions covering trade and the fentanyl crisis.
In addition, Beijing is proposing a “green channel” for rare earth exports to the European Union, aiming to streamline export approvals. A China-EU summit is expected in July to commemorate 50 years of diplomatic relations.
As both nations return to the negotiating table, the stakes remain high—not just for their own economies but for global trade stability.
