China and the United States began a new round of trade talks in London on Monday, Beijing\u2019s state media reported, as the world\u2019s two biggest economies seek to shore up a shaky truce after bruising tit-for-tat tariffs. The two sides are meeting in the historic Lancaster House, run by the UK Foreign Office, following a first round of talks in Geneva last month. Chinese Vice Premier He Lifeng was again heading the team in London. Chinese state news agency Xinhua reported the start of the talks. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation, President Donald Trump said on Friday. \u201cThe meeting should go very well,\u201d Trump said on his Truth Social platform. His press secretary, Karoline Leavitt, told Fox News on Sunday: \u201cWe want China and the United States to continue moving forward with the agreement that was struck in Geneva.\u201d While the UK government reiterated that it was not involved in the discussions, a spokesperson said: \u201cWe are a nation that champions free trade.\u201d UK authorities \u201chave always been clear that a trade war is in nobody\u2019s interests, so we welcome these talks\u201d, the spokesperson added. Rare earthsThe talks in London come just a few days after Trump and Chinese President Xi Jinping finally held their first publicly announced telephone talks since the Republican returned to the White House. Trump said Thursday\u2019s call reached a \u201cvery positive conclusion\u201d. Xi was quoted by Xinhua as saying, \u201cCorrecting the course of the big ship of Sino-US relations requires us to steer well and set the direction.\u201d Tensions between the two nations have soared, with Trump accusing Beijing of violating a tariff de-escalation deal reached in Geneva in mid-May. \u201cWe need China to comply with their side of the deal. And so that\u2019s what the trade team will be discussing tomorrow,\u201d Leavitt said on Sunday. A key issue will be Beijing\u2019s shipments of rare earths \u2014 crucial to a range of goods, including electric vehicle batteries and which have been a bone of contention for some time. \u201cRare earth shipments from China to the US have slowed since President Trump\u2019s \u2018Liberation Day\u2019 tariffs in April,\u201d said Kathleen Brooks, research director at trading group XTB. \u201cThe US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology, including microchips and to make it easier for Chinese tech providers to access US consumers,\u201d she added. In April, Trump introduced sweeping worldwide tariffs that targeted China most heavily. At one point, Washington hit Beijing with additional levies of 145 per cent on its goods, triggering a tit-for-tat escalation as China\u2019s countermeasures on US goods reached 125pc. In Switzerland, after two days of talks, the two sides agreed to slash their staggeringly high tariffs for 90 days. But differences have persisted, including over China\u2019s restrictions on exporting rare earth minerals. The impact was reflected in the latest official export data released Monday in Beijing. Exports to the United States fell 12.7pc in May from the previous month, with China shipping $28.8 billion worth of goods. This was down from $33bn in April, according to Beijing\u2019s General Administration of Customs. \u2018Green channel\u2019Throughout its talks with Washington, China has also launched discussions with other trading partners \u2014 including Japan and South Korea \u2014 to try to build a united front to counter Trump\u2019s tariffs. On Thursday, Beijing and Canada agreed to regularise their channels of communication after strained ties. Canadian Prime Minister Mark Carney and Chinese Premier Li Qiang also discussed trade and the fentanyl crisis, Ottawa said. Beijing has also proposed establishing a \u201cgreen channel\u201d to ease exports of rare earths to the European Union, and fast-tracking approval of some export licenses. China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties. Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.<\/p>\n","protected":false},"excerpt":{"rendered":"
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