The United States and China are set to resume high-level trade talks in London on Monday, aiming to uphold a fragile truce despite ongoing strains in their economic relationship.
President Donald Trump announced that the U.S. delegation will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. Representing China will be Vice Premier He Lifeng, who also led Beijing’s negotiating team during last month’s discussions in Geneva.
Trump expressed optimism about the talks on his Truth Social platform, saying, “The meeting should go very well.”
Speaking to Fox News on Sunday, White House Press Secretary Karoline Leavitt emphasized the administration’s stance: “We want China and the United States to continue moving forward with the agreement that was struck in Geneva.”
Although the UK is hosting the talks, its government stressed that it is not involved in the substance of the discussions. A government spokesperson stated, “We are a nation that champions free trade. A trade war benefits no one, so we welcome these negotiations.”
Recent Developments
The talks follow a rare direct phone call between Trump and Chinese President Xi Jinping on Thursday — their first public conversation since Trump returned to office. Trump described the call as having a “very positive conclusion,” while Xi, quoted by China’s state-run Xinhua news agency, remarked that “correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction.”
The renewed discussions come amid rising tensions. Trump recently accused Beijing of breaching a tariff-reduction deal reached in May in Geneva.
“We need China to comply with their side of the deal. And that’s what the trade team will be discussing tomorrow,” Leavitt said.
Spotlight on Rare Earths
A key sticking point in the negotiations is China’s reduced exports of rare earth minerals — essential for manufacturing items like electric vehicle batteries. These shipments have slowed since Trump imposed sweeping new tariffs in April under his “Liberation Day” initiative.
“The U.S. wants these rare earth shipments to be reinstated,” said Kathleen Brooks, research director at XTB, a trading group. “Meanwhile, China is pushing back against U.S. immigration restrictions on students, limitations on tech access, and barriers for Chinese tech companies in the American market.”
In April, the U.S. levied an additional 145% in tariffs on Chinese goods, prompting China to impose retaliatory tariffs of up to 125%. A 90-day tariff truce was agreed upon during talks in Switzerland in May, but lingering disagreements — particularly over China’s export controls on rare earths — remain unresolved.
New Chinese customs data released Monday revealed that exports to the U.S. dropped 12.7% in May to $28.8 billion, down from $33 billion in April.
China Seeks Wider Trade Partnerships
In parallel with U.S. talks, Beijing has been actively strengthening ties with other major economies. On Thursday, China and Canada agreed to regularize their trade communications following diplomatic tensions. Canadian Prime Minister Mark Carney and Chinese Premier Li Qiang also discussed trade and the fentanyl crisis.
China is also looking to establish a “green channel” for rare earth exports to the European Union, with proposals to fast-track certain export licenses. A China-EU summit is expected in July, marking 50 years of diplomatic relations between the two.
