US-China trade talks resumed in London on June 10, extending a new bilateral economic and trade consultation mechanism launched with more than six hours of discussions the day before. While no deal was reached, both sides signaled cautious optimism.
As reported by Xinhua and QQ News, the meetings took place at Lancaster House near Buckingham Palace and were led by US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. China's delegation was led by Vice Premier He Lifeng, alongside Commerce Minister Wang Wentao and Trade Representative Li Chenggang.
Talks focused on defusing tensions surrounding rare earth exports and US export controls on advanced technologies, which have intensified since the tentative trade truce agreed in Geneva in mid-May.
Rare earth bargaining chips and conditional concessions
The US indicated it may ease select export restrictions in return for China's commitment to relax its rare earth export controls. With China supplying nearly 70% of the world's rare earths, the minerals remain a strategic lever across industries from defense to consumer electronics, according to Bloomberg and the Irish Examiner.
Recent US export curbs—aimed at chip design software, aircraft engine parts, chemicals, and nuclear materials—were introduced during a spike in tensions. Reuters reported the US may lift some of these restrictions if China commits to boosting rare earth shipments.
National Economic Council Chair Kevin Hassett told CNBC the Trump administration expects a post-talks agreement that would ease US export controls and unlock Chinese rare earth exports. However, he emphasized that the most advanced Nvidia chips used for AI will remain restricted.
"The very, very high-end Nvidia stuff is not what I'm talking about," Hassett said, clarifying that H20 chips used for AI training will stay restricted. He noted that other semiconductor-related curbs may be reconsidered, as they are "also very important to them [China]."
Political optics and the Trump factor
On June 9, President Trump told reporters the trade talks were "going well," though he noted that "China is not easy to deal with." Sputnik reported that Trump reiterated the goal of "opening up China" and criticized past administrations for not addressing trade imbalances.
Speaking at an "Invest in America" roundtable, Trump said he had "only received good signals" from the talks and expected updates soon. He also pointed to previous tariffs as having reduced the US trade deficit and boosted federal revenue.
Trump's administration has imposed a "reciprocal tariff" regime, raising duties on Chinese goods to as high as 125%, alongside a 20% penalty linked to China's handling of synthetic drug enforcement. CCTV noted that a 90-day suspension of these tariffs for non-China trade partners is set to expire in early July.
Strategic leverage and market reactions
The US and China are leveraging control over strategic materials. Washington has tightened export licenses for ethane, a key input in plastics, where the US dominates and China is the top buyer, while Beijing's rare earth export curbs have drawn fire from US lawmakers.
The White House has repeatedly hinted at imminent trade deals, though only one—signed with the UK—has been announced. According to Anue, the US and India extended trade discussions this week, aiming to conclude talks before a July 9 deadline.
New tariffs took effect on June 4, doubling levies on steel and aluminum imports from 25% to 50%. Trump's broader tariff agenda is facing legal hurdles, with a federal appeals court temporarily upholding the measures after a lower court found the sweeping duties exceeded presidential authority.
The London negotiations aim to rebuild trust after the Geneva truce and could mark a shift toward easing broader trade tensions. They follow a reportedly positive June 5 call between Trump and Chinese President Xi Jinping.
Investor sentiment improved as Chinese equities in Hong Kong entered a bull market and the S&P 500 neared record levels. However, no concrete deals have been finalized.
Delegations are set to reconvene at 10 a.m. on June 10 in London. Treasury Secretary Bessent called the first day a "good meeting," while Commerce Secretary Lutnick described the talks as "fruitful." Vice Premier He Lifeng has yet to make a public comment.
Article edited by Jack Wu
