Information
Top US and Chinese officials convened in London on Monday for critical trade talks amid heightened tensions between the two nations. China dispatched Vice Premier He Lifeng, while the US delegation included Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. The discussions, held at Lancaster House, are expected to address US restrictions on high-tech exports to China and Beijing’s curbs on rare earth mineral exports, a sector where China maintains global dominance. This meeting follows an agreement between Presidents Trump and Xi during a recent phone call, marking the first direct engagement since May when both sides eased tariffs following negotiations in Switzerland.
The White House has framed the meeting as a test of China’s commitment to the trade agreement discussed in May. President Trump and his economic team, including National Economic Council Director Kevin Hassett, emphasized the importance of a “handshake” agreement as a signal of sincerity and progress. The US anticipates that, following this symbolic gesture, China will begin releasing rare earth minerals in significant volumes and that export controls will be relaxed. China has echoed a similar sentiment, urging the US to honour the agreement without further criticism. With both economies under pressure and global markets closely watching, the talks, potentially extending into Tuesday, are seen as a pivotal step toward stabilizing the trade relationship.
Source: BBC, Reuters
So What
Trump is likely seeking an agreement that he can present as a “win” to both international and domestic audiences. However, China may be unwilling to offer him anything that could be portrayed as a public relations victory in the short term, unless significant concessions are made. As a result, the US may lack the necessary leverage, which could lead to a deal that is weaker than anticipated.
Follow us to join the intelligence community!