U.S.–China Trade Talks Resume in London Amid Rare-Earth Tensions
June 9, 2025 — London
Top trade officials gathered in London on Monday for a new round of U.S.–China trade talks, as both sides seek to stabilize their strained economic relationship. The discussions come at a critical juncture for global trade and supply chain security.
Latest Updates from U.S.–China Trade Talks
The negotiations are taking place at Lancaster House, a historic venue near Buckingham Palace. Representing the U.S. are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. China’s delegation is led by Vice Premier He Lifeng and Commerce Minister Wang Wentao.
Key Issues on the Table
- Rare-Earth Exports: China’s licensing rules on seven rare-earth elements have disrupted global supply chains. The U.S. seeks guarantees on resumed shipments.
- Technology Controls: The U.S. is requesting eased restrictions on semiconductor access, while considering targeted relief on American tech exports.
- Tariff Suspension: The May agreement to pause most of the 100%+ tariffs for 90 days is being reviewed, with hopes of a permanent resolution.
Economic & Market Reactions
- China’s exports to the U.S. plunged 35% in May year-over-year, the sharpest drop since early 2020.
- Asian equities rallied Monday, with Hong Kong’s Hang Seng Index leading gains.
- U.S. Treasury yields rose ahead of the upcoming CPI inflation report, expected later this week.
Support from the U.K.
While not directly involved, the U.K. is hosting the event and assisting with logistics. Chancellor Rachel Reeves met with both delegations on Sunday, and Business Secretary Jonathan Reynolds is scheduled to meet with Minister Wang. A U.K. government statement emphasized support for “free trade” and said that a trade war “is in nobody’s interests.”
Outlook for the U.S.–China Trade Talks
The U.S.–China trade talks may extend into Tuesday. Analysts believe progress on rare-earth exports and tech policy could ease tensions, but long-term solutions remain uncertain. President Trump and President Xi Jinping spoke by phone last week to help facilitate the resumption of talks.
What’s Next?
- Potential conclusion of talks on Tuesday, June 10
- Release of U.S. CPI inflation data midweek
- Continued monitoring of market responses and trade commitments
Paradigm Futures will continue to track updates from the ongoing U.S.–China trade talks in London.
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