U.S. and China to Resume High-Level Economic Talks in London Amid Trade Stalemate
In a turn of events, top U.S. and China economic officials will be seated across the negotiating table in London next Monday to restart high-level trade talks. The meeting, confirmed by President Donald Trump, could be a game-changer as the world’s two largest economies exchange blows in a full-blown trade war.
President Trump revealed the agenda following a 90-minute phone call with Chinese President Xi Jinping on Tuesday. The call was described as “very positive,” raising new hopes for progress in the often-contentious U.S. and China relationship—one marked by tariffs, sanctions, and escalating policy tensions.
Who’s in the Room: Key U.S. and China Officials at the Table
The US team consists of:
- Treasury Secretary Scott Bessent
- Commerce Secretary Howard Lutnick
- US Trade Representative Jamieson Greer
China’s delegation will be headed by Vice Premier He Lifeng, a veteran trade negotiator.
Though the agenda hasn’t been officially unveiled, items that will probably make the cut include:
- Reducing tariffs
- Exports of rare earth minerals
- Intellectual property rights
- Regulations for the tech industry
Why London?
Analysts opine that selecting London as a neutral venue is a symbolic act for resetting bilateral tensions. The UK government, having independent trade relations with the two countries, has extended its offer to host the meeting but remains uninvolved officially.
Backdrop: A Trade War in Limbo
The US-China trade war flared up again in early 2025 when retaliatory tariffs were imposed by both nations. A temporary truce in May where the U.S. reduced tariffs from 60% to 30% and China cut tariffs from 25% to 10% stalled since then.
President Trump asserted this week that China has committed to reinstating exports of rare earth minerals, which play a crucial role in U.S. defense and tech industries, although this hasn’t been reported by Chinese state media.
What’s at Stake
As global supply chains are already under pressure, whatever result emerges from these negotiations will reverberate around international markets. A positive agreement would:
- Restore investor confidence
- Normalize trade channels
- Dampen inflationary pressure
- Foster further economic cooperation
Failure, though, may incite new rounds of tariffs, currency volatility, and continued disruption in the global economy.
Looking Ahead: Can Diplomacy Deliver?
With the London trade talks looming, the international business community awaits with hopeful skepticism. There’s a common hope that this session may be the turning point to return the global economy back to predictability.
Experts caution, though, that a single meeting will not settle the underlying issues in the U.S.-China economic competition.
“Trust is the greatest shortfall in this relationship,” asserted Dr. Susan Weller, a Council on Foreign Relations senior fellow. “What is required is a series of verifiable commitments—not promises.”
London talks are anticipated to extend through Tuesday, with a possible follow-up summit teased for July. If this results in a full-fledged trade agreement or simply yet another temporary reprieve is unknown.
Follow us for more news at Valleynewz.com