US and China Discuss Trade Disputes in London
Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bescent, and Trade Representative Jamieson Greer met with senior Chinese officials in London on Monday, aiming to resolve ongoing trade tensions between the United States and China, the world’s two largest economies.
President Donald Trump made remarks about the London talks last Thursday, following a lengthy phone conversation with Chinese leader Xi Jinping. He described the tone of their 90-minute discussion as “very positive,” claiming that relations with China and a potential trade agreement were in “very good condition.”
One notable discrepancy between the accounts of the call from Beijing and Washington was the lack of mention of rare earth minerals by Chinese officials. In contrast, Trump noted that these minerals were a significant point in his conversation with Xi.
Lutnick’s appointment of a General Affairs Director to the London Negotiation Team has been interpreted as an indication that rare earths, essential for the high-tech sector, will be included in future trade discussions. Lutnick is advocating for stricter enforcement of US export controls on advanced technologies sold to China.
Kevin Hassett, Director of the National Economic Council, expressed hope for a brief but impactful meeting regarding key mineral supplies on that Monday. He optimistically said that following a handshake, US export restrictions could be relaxed, allowing for discussions on less contentious issues to resume.
Hassett also mentioned that China had started the process of releasing important mineral exports, though he noted that the quantities were not as significant as previously agreed upon in Geneva. He made reference to upcoming trade consultations scheduled for early May in Geneva.
British Prime Minister Rachel Reeves had a meeting with Bessent and China’s Deputy Prime Minister Lifeng on Sunday, though she clarified that her government would not take a direct role in the US-China trade discussions. She emphasized the UK’s commitment to free trade and acknowledged that the ongoing trade war benefits no one.
According to China’s Foreign Ministry, plans were in place for the delegation to remain in London until Friday, although the extent of their time spent negotiating with the US team remains unclear. Analysts expressed skepticism about resolving the complexities of the US-China relationship in just one week.
The US stock market reacted positively to the news of the London conference, buoyed by a strong employment report released following Trump’s call with Xi. Investors were looking ahead to new inflation data expected later in the week, anticipating that it might indicate minimal effects of tariffs on consumer prices.
As the S&P 500 closed above 6,000 for the first time since February, it seemed that investors were factoring the current uncertainties related to tariffs into a more optimistic economic outlook.
