LONDON'S TRADE SUMMIT: CHINA AND THE STATES
Trade negotiations between the United States and China continue on their second day, sparking optimism for potential progress in resolving ongoing economic disagreements.
In this photograph provided by Xinhua News Agency, Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent are seen smiling as they pose for a photo with each delegation before starting their meeting to discuss China-U.S. trade in London, on June 9, 2025.
On the second day of these negotiations, the United States and China continued their discussion, striving to maintain a fragile truce in a volatile trade conflict further complicated by export restrictions.
The gathering of high-ranking officials from the world's two major economic powers began Monday in London, following a previous round of discussions in Geneva last month.
As traders held their breath, markets fluctuated, hoping these talks would bring some much-desired tranquility to trading floors and help alleviate tensions between these economic titans.
According to an AFP report, the "talks commenced earlier this" morning.
One of President Donald Trump's advisors believes a powerful shake of hands will conclude the talks, as they take place at the prestigious Lancaster House, operated by the UK Foreign and Commonwealth Office.
Trump made a statement at the White House on Monday, saying, "We are doing well with China. China's no walk in the park."
He went on to add, "I'm only getting good reports."
The main agenda for the discussions is predicted to revolve around exports of rare earth minerals essential in a wide array of goods, such as smartphones, electric vehicle batteries, and green technology.
In Geneva, the two nations agreed to decrease tariffs on these minerals, and China agreed to release the magnets and rare earths necessary for the economy. However, even though Beijing has been releasing some supplies, it's been moving along at a slower pace than anticipated by some companies, as revealed by U.S. top economic adviser Kevin Hassett on CNBC.
Hassett also mentioned that China is being slower with the release of rare earths, but he expressed optimism for a positive outcome after the meeting.
He added that the Trump administration might be prepared to loosen recent limitations on tech exports in exchange for Beijing's easing of restrictions on rare earth metal exports.
Since Trump took office in 2017, tensions between Washington and Beijing have escalated, with both countries engaging in a tariff war, raising duties on each other's goods to multi-digit percentages – effectively creating a trade embargo.
The Geneva pact served as a temporary truce, reducing American tariffs on Chinese goods from 145% to 30%, and Chinese countermeasures from 125% to 10%. However, Trump recently asserted that China had "blatantly violated" the agreement.
Investors remain hopeful, clinging to even the slimmest glimmers of hope for a rally as the talks carry on.
Kathleen Brooks, research director at XTB, stated, "Investors are more than ready to hold onto any positive trade headline that comes their way right now, as it keeps the prospect of a rally alive."
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, remarked that, although no groundbreaking progress had been announced, "it appears the first day of the second round of negotiations seemed to go relatively smoothly."
Gossips are circulating that the U.S. may propose trading some tech export concessions for China's easing of restrictions on rare earth metal exports.
Rare earth shipments from China to the U.S. have slowed down since the trade conflict kicked off, following Trump's "Freedom Day" declarations.
Trump slapped tariffs of 10% on allies and adversaries alike, with the possibility of higher rates on numerous economies.
The tariffs have already had a significant impact, as statistics from Beijing showed that in May, Chinese exports to the United States dropped by 12.7%.
China is also discussing trade agreements with other nations, such as Japan and South Korea, to develop a united front against Trump's tariffs.
In a phone call on Tuesday, Chinese leader Xi Jinping conversed with South Korea's new President Lee Jae-myung, encouraging cooperation to preserve free trade and uphold supply chains' stability.
Chinese Vice Premier He Lifeng heads the Chinese negotiating team, joined by Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang.
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer lead the American delegation.
Investors are eagerly anticipating any positive developments from the negotiations, as a resolution could lead to a rally in the business and finance sectors, potentially benefiting various industries that heavily rely on rare earth minerals, such as technology, automotive, and green technology.
The discussions between the United States and China may also influence other global business relationships, as China is currently in talks with countries like Japan and South Korea to form a united front against trade tariffs imposed by the U.S. government.
