Trade talks between the US and China will move into a second day in an effort to ease tensions over the shipment of technology and rare earths. Representatives from the two countries concluded their first meeting, which lasted more than six hours, at Lancaster House in London, according to US officials. The talks concluded at around 8pm and the sides will meet again at 5pm on Tuesday (tomorrow).
“Things are going well with China. China is not an easy country,” President Trump told reporters at the White House, adding that he had only received positive reports.
The U.S. delegation was led by Treasury Secretary Scott Bessent, while Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer also took part in the talks. Lutnick’s position as former Cantor Fitzgerald CEO underscored the importance of export controls in these talks.
“We had a good meeting,” Bessent told reporters in London, while Lutnick described the talks as “productive.” The Chinese delegation was led by Deputy Prime Minister He Lifeng, but Lifeng left without speaking to the media.
The U.S. has said it is willing to lift some technology export restrictions in exchange for China easing restrictions on rare earths shipments. Rare earths are critical to many energy, defense and technology products, including smartphones, fighter jets and nuclear reactor rods. China accounts for 70% of the world’s production.
The Trump administration is preparing to lift restrictions it put in place in recent weeks on chip design software, jet engine parts, chemicals and nuclear materials, but Trump has not made any specific announcements about lifting those restrictions, saying “we’ll see.”
The White House National Economic Council director Kevin Hassett said in a statement from Washington that the U.S. expects to ease export restrictions after talks in London and China to ship more rare earths. But Hassett reiterated that the most advanced Nvidia chips will not be exempt from those restrictions.
This first round of talks was a step toward understanding how well both sides are holding to their Geneva commitments. In talks last month, Washington and Beijing agreed to cut devastating tariffs for 90 days in an effort to balance trade. A phone call last week between President Trump and Chinese President Xi Jinping appeared to generate fresh momentum for a new deal.
*This is not investment advice.
