Day two of U.S.-China talks is underway in London, as the world’s largest economies iron out their differences after the tariff turmoil imposed by Trump disrupted global trade in April. The talks hold significance as Washington has accused Beijing of blocking exports of rare earth minerals, whereas Beijing wants the U.S. to lift restrictions on Chinese access to advanced semiconductor technology. These accusations come after both sides reached a trade truce in mid-May in Geneva, giving a 90-day pause to the triple-digit tariffs imposed.
The talks have been led by U.S. Treasury Secretary Scott Bessent, U.S. Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. The Chinese contingent is helmed by Vice Premier He Lifeng, Wang Wentao, China’s commerce minister, and trade negotiator Li Chenggang are part of Beijing’s delegation. Talks went on for over 7 hours on day one, June 9, at Lancaster House, an ornate 200-year-old mansion near Buckingham Palace.
China’s not easy, says Trump
After day one, US officials were upbeat but vague on the progress made. Treasury Secretary Scott Bessent said it was a “good meeting,” while Commerce Secretary Howard Lutnick called the negotiations “fruitful.” President Trump told reporters: “We are doing well with China. China’s not easy.”
According to a Bloomberg report, the U.S. has signaled its willingness to remove restrictions on some tech exports in exchange for assurances that China will ease limits on shipments of rare earth minerals. These minerals are critical to a wide array of energy, defense and technology products. China accounts for almost 70% of the world’s production of rare earths.
Market participants stay cautious
The initial negotiations post May 12 sparked a global relief rally in stock markets, which had taken a drubbing in April. Now investors await clarity, as any deadlock could spew fears of a recession. All three major indices in the U.S. were trading little changed in the pre-market session, whereas on June 9, the S&P 500 and Nasdaq posted slight gains while the Dow Jones ended marginally below the flatline.
Meanwhile, markets in the Asia pacific region traded in a mixed range on Day 2 of the negotiations. Japan’s benchmark Nikkei 225 pared earlier gains to end the day 0.32% higher. South Korean markets rose for the fifth consecutive session. Whereas the Chinese and Hong Kong indices traded in the red.
