On June 10, senior officials from the United States and China began a new round of trade talks in London, hoping to achieve a breakthrough in resolving issues related to export controls on rare earth elements. These materials are key to global supply chains, and restricting access to them could cause major disruptions and slowdowns in the global economy. informsReuters agency.
Investors are counting on the two countries to improve relations after a previous agreement reached in Geneva last month was overshadowed by accusations from Washington. The US claims that China is blocking the export of critical products.
The negotiations are taking place at an important time for the economies of both countries. According to customs statistics, Chinese exports to the US fell 34.5% in May, the worst since February 2020, when the COVID-19 pandemic disrupted global trade. While the impact on US inflation and the labor market remains limited for now, the US currency is under pressure from the actions of the US government.
On June 9, representatives of both countries held a meeting at Lancaster House in London to discuss differences over the Geneva Agreement. Talks are due to resume on Tuesday morning, and the parties are expected to provide an update on the progress of the discussions.
Donald Trump’s tariff policy has often been inconsistent. This has caused instability in global markets, contributed to congestion at key ports and confused trade chains. As a result, companies suffered multibillion-dollar losses due to lost sales and rising costs.
The second round of talks comes just four days after a phone call between Donald Trump and Xi Jinping — the first since Trump’s inauguration on January 20.
