#USChinaTradeTalks USChinaTradeTalks

US-China Trade Talks Kick Off in London 🇺🇸🇨🇳

High-level trade talks between the US and China began today at Lancaster House, London, aiming to ease tensions in their ongoing trade war. 🏛️

🔑 Key Points:

• Delegations: US team led by Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer. China represented by Vice Premier He Lifeng and Commerce Minister Wang Wentao.

• Focus Areas: Chinese rare earth exports (crucial for tech like smartphones and EVs) and US restrictions on semiconductors and AI tech.

• Background: A May truce in Geneva lowered US tariffs on Chinese goods from 145% to 30% and Chinese tariffs on US goods from 125% to 10%, with a 90-day deadline to finalize a deal. Both sides accuse each other of breaching non-tariff pledges.

• Recent Developments: China approved some rare earth export licenses, but the US claims the pace is slower than agreed. Trump and Xi’s “very positive” call last week set the stage for progress.

• Expectations: White House’s Kevin Hassett anticipates a “big, strong handshake” to ease US export controls and boost rare earth flows, though advanced chip restrictions may remain.

💬 Swetha Ramachandran (Artemis): “China mines 69% of global rare earths, critical for US tech. There’s enough on the table for both sides to walk away with wins.”

⚠️ Economic Impact: The OECD warns Trump’s tariffs could slow global growth to 2.9%, with China’s May exports (+4.8%) underperforming and imports dropping (-3.4%).

Will these talks stabilize global markets? Stay tuned! 📈 g