The U.S.-China trade talks entered their second day Tuesday in London, with negotiators from both sides attempting to find common ground on key economic flashpoints. The high-level discussions follow a recent 90-day suspension of retaliatory tariffs and come amid escalating concerns over access to critical technology and resources.
President Donald Trump, speaking late Monday, acknowledged the difficulty of the discussions but maintained a positive tone. “We are doing well with China. China’s not easy,” he told reporters.
Key Developments from the London Negotiations
The meetings are being held at Lancaster House, a historic venue near Buckingham Palace, where a Chinese delegation led by Vice Premier He Lifeng met with U.S. Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer.
China’s commerce minister Wang Wentao and top trade negotiator Li Chenggang also joined the discussions, representing Beijing’s interests in critical issues ranging from tech access to trade tariffs.
The current round of U.S.-China trade talks is building on progress made in Geneva last month, where both countries agreed to pause a series of punitive tariffs that had triggered fears of a global economic downturn.
Semiconductor Restrictions and Rare Earths in Focus
The trade dispute is no longer just about tariffs. The two nations are at odds over advanced semiconductors that are crucial for artificial intelligence development, and over China’s export of rare earth elements, which are essential for industries such as automotive manufacturing and renewable energy.
The United States is pressing China to relax its restrictions on rare earth exports—curbs that sent shockwaves through the global supply chain after they were tightened in April. Meanwhile, Beijing is pushing back against U.S. measures that limit Chinese companies’ access to the technology needed to manufacture next-generation chips.
Trump Calls for Opening Chinese Markets
President Trump, speaking from the White House, emphasized his goal of gaining broader U.S. access to Chinese markets. “If we don’t open up China, maybe we won’t do anything,” Trump stated. “But we want to open up China.”
The U.S.-China trade talks resumed after a phone call between Trump and Chinese President Xi Jinping last Thursday. Trump later announced via social media that negotiations would continue in London, signaling a desire to stabilize the fraught economic relationship.
Outlook for Future Agreements
While no formal agreement has yet been reached, both delegations appear committed to continuing dialogue. Analysts say that a breakthrough could ease tensions across multiple industries, including electronics, education, and manufacturing.
The stakes remain high as the world’s two largest economies attempt to bridge significant ideological and economic divides. With semiconductors, rare earths, and tariff policies on the line, the outcome of these U.S.-China trade talks could have wide-reaching global implications.
