LONDON – United States and Chinese officials reconvened in London on Tuesday for a second day of high-level trade talks focused on resolving disputes over export controls, particularly involving rare earth materials. These materials, essential for sectors like electric vehicles, aerospace, semiconductors, and defence, have become a flashpoint threatening global supply chains and economic stability.
The negotiations follow a 90-day interim agreement reached in Geneva and come just days after a phone conversation between US President Trump and Chinese President Xi Jinping. US officials, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, are engaging with Chinese Vice Premier He Lifeng. Notably, Lutnick’s participation signals the heightened importance of export control discussions, as China holds a dominant position in rare earth production. Despite temporary export licenses granted to key US automakers, uncertainty looms amid a steep 34.5% drop in China’s exports to the US last month, raising concerns about inflation, supply disruptions, and broader economic fallout.