Top officials from the United States and China met in London on Monday in a renewed effort to stabilize their uneasy trade relationship, which has had significant ripple effects across the global economy.
China’s Vice Premier He Lifeng led the delegation from Beijing, joined by Commerce Minister Wang Wentao. On the U.S. side, key participants included Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer. The meeting took place at Lancaster House, a grand, historic venue near Buckingham Palace.
These discussions may extend into Tuesday and follow earlier negotiations in Geneva last month that brought about a temporary ceasefire in the escalating trade conflict. On May 12, both nations announced a 90-day pause on most of the steep tariffs—some exceeding 100%—that they had imposed on each other during the ongoing dispute. The truce was intended to ease tensions that had raised fears of a global economic slowdown.
As the world’s two largest economies, the U.S. and China remain heavily interdependent. However, tensions have persisted beyond tariffs. Chinese export data shows shipments to the U.S. fell 35% in May compared to the previous year. The two sides have also clashed over issues like advanced semiconductors critical to AI development, student visa restrictions for Chinese nationals in the U.S., and access to rare earth minerals crucial to various high-tech and automotive industries.
Last Thursday, President Donald Trump and Chinese President Xi Jinping had a lengthy phone conversation aimed at restoring communication. Trump later announced on social media that in-person talks would resume in London.
Rare earth elements were expected to be a central topic. In April, China began requiring exporters to obtain licenses for seven specific rare earths, leading to supply shortages that have alarmed automakers and industrial sectors worldwide. Concerns about production delays surfaced as inventories shrank.
On Saturday, Chinese officials signaled that they are working to address these supply concerns, which have been voiced by both American and European companies. Kevin Hassett, an economic adviser to the U.S. administration, told CNBC on Monday that he anticipated a brief but impactful meeting with what he described as a “big, strong handshake” on the rare earth issue.
Although the British government is not directly involved in the negotiations, it is hosting the talks and supporting logistics. U.K. Treasury chief Rachel Reeves met with both He and Bessent on Sunday, and Business Secretary Jonathan Reynolds was scheduled to meet with Wang Wentao.
In a statement, the British government reiterated its commitment to free trade: “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.”
