On the 9th, the United States and China will hold high-level trade talks in London, England. The main issue in this meeting is not tariffs but export controls.
The two countries agreed last month in Geneva, Switzerland, to significantly reduce tariffs for 90 days. However, China has imposed export restrictions on rare earth elements, and the United States has also strengthened export controls on semiconductor technology, escalating conflicts.
Kevin Hassett, Chairperson of the White House Council of Economic Advisers (NEC), said in a CBS interview on the 8th (local time) that "China's exports of critical minerals are below the level agreed in Geneva."
Since April, China has implemented an export licensing system for seven rare earth items. Consequently, the American automotive and electronics industries are experiencing a supply shortage of raw materials.
President Trump spoke with President Xi Jinping on the 5th to discuss this issue directly. The two leaders agreed to seek a solution through high-level negotiations.
The U.S. delegation at the talks in London on the 9th will include Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and Trade Representative Jamieson Greer. The Chinese delegation will be led by Vice Premier He Lifeng.
Minister Lutnick did not attend the Geneva negotiations. Experts noted that his participation in this meeting is evidence that the United States has a strong willingness to discuss export controls.
A spokesperson for China’s Ministry of Commerce stated on the 7th that "we will strengthen the approval of rare earth exports according to regulations." However, the U.S. stance is that it is still below the expected level.
Recently, the United States has also tightened export controls on China, targeting items such as aircraft engines, semiconductor design software, and nuclear power plant equipment.
Last month, it announced a complete ban on the use of Huawei's artificial intelligence (AI) chips. China regarded this as "a new attack" and protested.
Chairperson Hassett said, "I want the rare earth elements needed for cell phones, etc., to be supplied like before April," and added, "I hope that technical details do not delay the supply."
President Trump expressed optimism on the 6th, stating, "The talks will go very well."
The Wall Street Journal reported that China is expected to demand the lifting of U.S. export controls during this meeting.