The first day of negotiations at Lancaster House ended on the night of June 9 and will continue at 10:00 on June 10, British time.
Leading the US delegation were Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer. On the Chinese side, Deputy Prime Minister He Lap Phong led the delegation with Minister of Commerce Vuong Van Dao and Head of the negotiation delegation Ly Thanh Cuong.
Mr. Lutnick - the person in charge of export control - joining the US delegation shows that rare earths are a key issue. China currently has almost a monopoly on rare earth magnetism - an essential component in electric vehicle engines. Lutnick did not participate in negotiations in Geneva, where the two sides had reached a temporary tax cut.
The two sides are seeking to restore the temporary agreement reached in Geneva. However, Washington has accused Beijing of delaying the implementation of commitments, especially regarding rare earth exports.
White House economic adviser Kevin Hassett said the US wants China to make a specific commitment to resuming rare earth exports, following a phone call between President Donald Trump and Chinese President Xi Jinping last week. Mr. Hassett said the US expects easing export control to lead to immediate supply of rare earths.
The London talks came amid pressure on both economies. China's exports to the US in May fell 34.5% year-on-year - the biggest decline since February 2020.
In the US, consumer and business confidence declined, GDP in the first quarter grew negative due to a spike in imports as people took the opportunity to shop before prices increased.
The US labor market remains stable, but experts predict the pressure will be more evident in the summer.
Meanwhile, the Trump administration continues to appeal the ruling of the US commercial court, arguing that the tariffs he imposes on Chinese goods are beyond legal authority. The lawsuit could be filed in the Supreme Court.
Last week, Mr. Trump and Mr. Tap Can Binh had their first phone call since Mr. Trump took office for his second term. China warns the US about trade measures and Taiwan (China) issue. Mr. Trump said the two sides reached a positive conclusion, paving the way for a meeting in London. China has since granted temporary export licenses for rare earth to suppliers of three major US automakers.
In April, China suspended exports of many essential minerals, disrupting the supply chain of the auto, aviation, semiconductor and defense industries. The US side expects China to lift retaliatory measures, while only some export restrictions can be considered for easing.
Although the Geneva deal helps the global stock market recover, experts say the prospect of a comprehensive deal between the two sides is still far away due to the trend of supply chain separation and continued geopolitical pressure.
US President Donald Trump said on June 9 that he had received positive reports from the negotiating team and assessed all things are progressing well.
