On June 9, 2025, delegations from the United States and China convened in London in an effort to ease trade tensions that have threatened global supply chains and slowed economic growth. The meeting took place at the elegant Lancaster House, with the U.S. delegation led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer, while China’s contingent was headed by Vice Premier He Lifeng. During the first of two days of talks, White House economic advisor Kevin Hassett expressed the U.S. team’s desire for a “handshake” with China, particularly regarding rare earth materials, following an announcement by Donald Trump that Xi Jinping had agreed to resume shipments during a rare phone call between the leaders the previous week. The trade dispute has extended beyond tariffs to include export controls on critical goods for global supply chains. In April, China suspended exports of key minerals and magnets, essential for automotive, aerospace, semiconductor, and military industries. This move impacted China’s exports, which grew by 4.8% year-on-year in May but slowed to their lowest rate in three months. Exports to the U.S. plummeted by 34.5% year-on-year in May, marking the largest drop since February 2020. Imports also fell by 3.4% year-on-year in May, compared to a 0.2% decline in April. These negotiations follow an earlier agreement reached in Geneva, which briefly eased tensions after significant tariff reductions. The discussions occur amid economic challenges for both nations, with China facing deflation and the U.S. experiencing weakened business and consumer confidence due to trade uncertainty.
— new from France 24
