The United States and China are continuing trade negotiations in London. According to Bloomberg, the parties are discussing the removal of restrictions on technology exports and rare earth metal supplies. Asian markets and cryptocurrency prices reacted with gains.
Talks in London Enter Second Day
Delegations from both countries resumed the dialogue on trade relations, which began the previous day in London. The first meeting lasted over six hours and ended around 8:00 p.m. local time at Lancaster House. The second meeting is scheduled for 10:00 a.m. the next day, Bloomberg reported.
Representing the U.S. in the negotiations are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. Lutnick, who previously led Cantor Fitzgerald, is seen as a key figure in discussions on export controls. Bessent called the meeting “good,” and Lutnick described it as “productive.”
The Chinese delegation is headed by Vice Premier He Lifeng, accompanied by Commerce Minister Wang Wentao and Deputy Minister Li Chenggang. Minister Wang declined to comment to the press after the meeting. Li previously represented China at the World Trade Organization. China’s Ministry of Commerce serves functions equivalent to both the U.S. Department of Commerce and the Office of the U.S. Trade Representative.
Stances of Both Parties
The Chinese delegation stated that they approach the talks “in good faith but with principles.” Beijing believes the U.S. should recognize progress in the negotiations and lift negative measures against China.
Washington is reportedly willing to ease restrictions on technology exports in exchange for the lifting of China’s export limits on rare earth elements. These materials are essential for smartphones, reactors, missile defense systems, and other sensitive technologies. China produces around 70% of the global supply of these elements.
U.S. Considers Lifting Certain Restrictions
The Trump administration is discussing the potential removal of some recently implemented restrictions, including those on software for chip design, engine components, chemicals, and nuclear materials. President Donald Trump declined to confirm this directly, telling reporters, “We’ll see.”
Kevin Hassett, head of the U.S. National Economic Council, previously told CNBC that the White House expects that after a “handshake in London,” China will boost rare earth exports and the U.S. will ease export controls. He clarified, however, that restrictions on Nvidia H2O advanced chips used for AI training would remain in place.
Market Reaction
Stock indexes in the U.S. and Asia moved higher amid the positive developments. The S&P 500 approached its February high with a 2% gain.
