A fresh round of discussions to address the ongoing trade dispute between the United States and China is scheduled to commence in London on Monday.

On Friday, US President Donald Trump revealed that a high-level US delegation, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, will engage with Chinese officials. 

Beijing confirmed over the weekend that Vice Premier He Lifeng will represent China during the talks, set to occur between June 8 and 13.

The announcement follows a phone call last week between Trump and Chinese President Xi Jinping, which Trump described as a "very productive discussion." 

The leaders reportedly focused on trade issues, with Xi urging the US to lift restrictive measures imposed on China, according to China’s state news agency Xinhua. This call marked their first direct communication since the trade conflict intensified in February.

The trade war escalated earlier this year when Trump imposed broad tariffs on imports from multiple countries, with China facing the steepest penalties. Beijing retaliated with elevated tariffs on US goods, leading to a cycle of escalating levies that reached as high as 145%. 

In May, negotiations in Switzerland resulted in a temporary agreement, reducing US tariffs on Chinese goods to 30% and Chinese tariffs on US imports to 10%, alongside China’s commitment to ease restrictions on critical mineral exports. Both sides agreed to a 90-day window to negotiate a broader trade deal.

However, tensions have persisted. Recent data from Beijing revealed that China’s exports in May grew by 4.8% year-over-year, falling short of expectations, while imports declined by 3.4%, exceeding the anticipated 0.9% drop. 

Both nations have accused each other of violating the May agreement, with the US claiming China failed to resume critical mineral and rare earth magnet exports essential for industries like automotive and tech. 

China’s Ministry of Commerce announced on Saturday that it had approved some rare earth export licenses, though specifics on recipient countries were not disclosed. 

Trump noted on Friday that Xi agreed to resume trade in these materials, but White House National Economic Council Director Kevin Hassett indicated on Sunday that the pace of exports remains below the agreed-upon levels from the Geneva talks.

The upcoming London talks, part of the "China-US economic and trade mechanism," aim to resolve these disputes and prevent further escalation of the trade war between the world’s two largest economies.

Source: BBC

SMS/