Senior officials from the United States and China are meeting in London today in a renewed effort to ease tensions in the long-running trade war between the world’s two largest economies.
The high-level discussions come amid growing concern over the global economic damage caused by the dispute and broader US-led trade frictions. Investors are closely watching for signs of a breakthrough.
US Treasury Secretary Scott Bessent is leading the American delegation, while China is represented by Vice Premier He Lifeng, a seasoned negotiator and top-ranking government official.
The exact location of the talks has not been disclosed.
The negotiations aim to build on a preliminary deal struck in Geneva earlier this year, which saw both sides agree to a 90-day reduction in tariffs above 100% to create space for further dialogue.
Last week’s phone call between US President Donald Trump and Chinese President Xi Jinping paved the way for today’s talks. Mr Trump later claimed that China had agreed to resume shipments of rare earth minerals and magnets—key components for US manufacturing—that had been suspended by Beijing in retaliation for US tariffs.
In a sign of thawing relations, it was revealed this morning that US aerospace giant Boeing has resumed deliveries of aircraft to Chinese customers.
President Trump described the negotiations as “very far advanced”, although Beijing has been more measured in its remarks.
A Chinese government statement following the Trump-Xi call urged the US to refrain from causing further harm to the global economy.
So far, the trade war has taken a visible toll. US economic growth slowed sharply in the first quarter, even before the full impact of tariffs had taken effect.
In China, fresh data released on Monday pointed to mounting deflationary pressures, with factory gate prices falling deeper into negative territory in May—signalling weakening demand.
Customs figures also showed Chinese exports to the US plummeted by 34.5% year-on-year in May, accelerating from a 21% drop the previous month.
White House spokeswoman Karoline Leavitt told Fox News: “We want China and the United States to continue moving forward with the agreement that was struck in Geneva.
The administration has been monitoring China’s compliance with the deal, and we hope that this will lead to more comprehensive trade talks.”
A spokesperson for the UK government, which is hosting the negotiations, said: “We are a nation that champions free trade and have always been clear that a trade war is in nobody’s interests, so we welcome these talks.”
