LONDON — Senior officials from the United States and China are set to meet in London on Monday in a fresh effort to ease escalating tensions over trade, as both nations grapple with a prolonged economic rift that has rattled global markets. High on the agenda are China’s export restrictions on critical minerals — materials vital to key industries including electronics and electric vehicles.
While the United Kingdom is hosting the meeting, it will not take part in the talks directly. Details such as the exact time and venue remain undisclosed.
“We are a nation that champions free trade and have always been clear that a trade war is in nobody’s interests, so we welcome these talks,” a U.K. government spokesperson said.
The impact of the trade dispute is already being felt. On Monday, China reported a sharp 34.5% drop in exports to the U.S. for May — the largest decline since the early days of the COVID-19 pandemic, according to CNBC.
Last month, a glimmer of progress emerged when American and Chinese negotiators met in Geneva and reached a tentative agreement to pause many of the tit-for-tat tariffs that had escalated to as high as 145%. However, tensions have flared again in recent weeks, with both sides accusing each other of breaching the deal.
The latest talks follow a 90-minute phone call last week between President Donald Trump and Chinese leader Xi Jinping — their first conversation since Trump returned to office. Trump described the call as “very positive,” noting that Xi had agreed to resume exports of rare earth minerals and magnets to the U.S., materials considered essential to manufacturing and defense.
Trump, who just a day earlier had complained that Xi was “extremely hard to make a deal with,” said the upcoming meeting was aimed at “clarifying” the terms of the emerging trade framework. “We’re very far advanced on the China deal,” he told reporters.
The U.S. delegation in London will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. China will be represented by Vice Premier He Lifeng, who, along with Bessent and Greer, also participated in last month’s Geneva talks.
Global markets appeared optimistic ahead of the meeting, with Asian stocks posting gains early Monday.
