The United States and China have started high-level trade negotiations in London, United Kingdom. The negotiations are expected to focus on export controls as a major agenda item, specifically blocking exports of essential industrial materials and technology to each other.
The Chinese state-run Xinhua News Agency reported on the 9th (local time) that "Vice Premier He Lifeng and the United States have begun the first meeting of the China-U.S. economic and trade negotiations in London."
It is reported that the U.S. delegation includes Scott Bessent, Secretary of the Treasury, Howard Lutnick, Secretary of Commerce, and Jamieson Greer, Representative of the Office of the United States Trade Representative (USTR). China has organized its delegation led by Vice Premier He Lifeng, but has not released specific names.
This high-level trade negotiation is the second to be arranged since the first meeting held last month in Geneva, Switzerland. In the first negotiation, the two countries agreed to reduce mutual tariffs to as low as 115%, and China also agreed to lift non-tariff measures.
While the first negotiation broke the ice, subsequent discussions faced difficulties as the United States raised concerns over China's export controls on critical minerals and rare earth elements. The United States claims that China’s maintenance of export controls, after promising to lift non-tariff measures, is a violation of the agreement, while China counters that the United States has implemented discriminatory measures, such as canceling student visas.
The second round of negotiations is expected to focus on export controls as a major agenda item. Chairperson Hassett stated in an interview with CNBC that "all export controls from the U.S. side are expected to be relaxed, and rare earth materials will be exported from China."