3 days Ago
The US team will represent Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. China will be represented by Vice Premier He Lifeng, who will stay in the UK until 13 June for economic activities.
The London summit is part of a 90-day truce brokered in previous discussions in Switzerland, which initiated a partial easing of tensions, including a modest cut in tariffs on either side. But since then, both countries have exchanged accusations of violating the deal.
Tech Controls and Rare Earths Disputes
At the heart of both the fight over the Hong Kong extradition law and the trade war is access to rare earth minerals, which are vital to industries as diverse as electronics, automotive and defense. FFChina also produces nearly 70 percent of the world's rare earth minerals, giving it a powerful coercive tool in the conflict. Though Beijing had initially limited exports, it has recently granted some export licence applications.
Trump said President Xi agreed to restart shipments of critical minerals, though US officials say current export levels remain below expectations. National Economic Council Director Kevin Hassett said the shipments were on the rise but "not at the levels we think we agreed to in Geneva."
The presence of Secretary Lutnick — who is known for helping to slap tough technology export controls on China — also suggests a potentially harder American line on tech trade.
Financial Pressure and Lack of Clarity
China's trade data for Monday was weaker than expected, with a slowdown in export growth and an even larger drop in imports. May's year-on-year export growth was 4.8%, while import growth was 3.4%—the latter was well below what had been expected. The figures highlight the economic strain on both countries, which further raises the stakes for the ongoing talks.
Despite public expressions of optimism after the most recent meeting, rhetoric from both capitals in recent weeks has reflected mutual suspicion. Last month, Trump asserted that China was "ripping off" the Geneva accord, while Beijing said that the US had "severely violated" the spirit of the agreement.
Now both sides have to turn temporary truces into a lasting, enforceable agreement in the next 90 days.
