US and China to Hold New Trade Talks in London

A new round of trade talks between the United States and China is happening in London on Monday. The goal is to ease tensions in the ongoing trade war between the world’s two biggest economies. US President Donald Trump said a senior American team will meet with Chinese officials. China confirmed that Vice Premier He Lifeng will attend the talks during his visit to the UK from June 8 to 13.

These talks come after a recent phone call between Trump and Chinese President Xi Jinping, which Trump described as a “very good talk.” He said the discussion ended on a positive note, with both sides agreeing to move forward on trade.

Last month, both countries had agreed to a temporary truce in their trade dispute. The US reduced its import taxes on Chinese goods to 30%, while China cut tariffs on American goods to 10% and promised to loosen restrictions on critical mineral exports. However, tensions rose again when both sides accused each other of breaking the deal. Trump said China “totally violated” the agreement, and China responded by saying the US had done the same.

One of the major issues expected in the London talks is the trade of rare earth minerals, which are vital for producing electronics and electric vehicles. China controls about 69% of the global supply of these minerals, giving it a strong position in negotiations. The US had also stopped some technology exports to China, like semiconductors. Although China recently allowed some rare earth exports, US officials say it’s still less than what was agreed earlier.

Economic data from China released on Monday shows the impact of these trade tensions. While exports grew by 4.8% compared to last year, imports fell by 3.4%, more than expected. Both countries have given themselves 90 days from May to come up with a long-term trade deal. The outcome of this London meeting could be a key moment in deciding the future of US-China trade relations.