FX.co ★ U.S.-China Trade Talks to Enter Second Day Amid Rare Earth Tensions

Senior U.S. and Chinese officials are poised to continue their trade discussions in London today, following a session carried out yesterday. These negotiations are particularly focused on export controls concerning rare earth elements, which are essential to industries such as aerospace, semiconductors, and defense. Disruptions in the supply of these materials threaten global economic stability. This set of talks comes after a provisional agreement reached in Geneva last month, offering temporary respite. However, this was soon overshadowed by U.S. allegations that China was curtailing key exports. The U.S. delegation is led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, while Vice Premier He Lifeng heads the Chinese team. These discussions build upon a recent conversation between President Trump and President Xi, where Xi committed to recommencing shipments of rare earths. Nonetheless, manufacturers worldwide remain apprehensive about ongoing supply chain instabilities.