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President Donald Trump’s chief trade officer met his Chinese counterpart in London on Monday for consultations aimed at resolving an ongoing trade dispute between the two world economies.
US Treasury Secretary Scott Bescent, Commerce Executive Director Howard Lutnick and trade representative Jamieson Greer represent the United States.
China’s Ministry of Foreign Affairs I said it on Saturday Beijing’s leading trade negotiator, his Vice President Lifeng will be in the UK from June 8th to 13th.
The talks came last week after Trump said he had made a long phone call with Chinese President Xi Jinping as it appears he is trying to avoid a full-scale trade war.
Diplomatic efforts by both sides surged after weeks of trade tensions and uncertainty rose for weeks after Trump announced in April that he had wiped out import duties on China and other trading partners.
Beijing retaliated, and a severe escalation in the job continued before both sides temporarily cut jobs in Geneva for 90 days in May, promoting consultations. At the time, US tariffs on Chinese imports were reduced from 145% to 30%, while China’s tax on US imports was reduced from 125% to 10%.
China and the US have since repeatedly accused them of violating the Geneva agreement, with Washington saying Beijing is slow to approve additional important mineral exports to the US, while China criticised the US for imposing new restrictions on Chinese student visas and additional export restrictions on tips.
US Press Director Karoline Leavitt on Sunday said the London talks will focus on moving forward with the Geneva agreement, focusing on both parties’ strategic interests in each other’s markets.
There are no easy fixes
Analysts say Monday’s talks are unlikely to make major advances in solving disagreements and sector-specific tariffs targeting a wide range of strategic industries, from technology and critical minerals to manufacturing and agriculture.
Rebecca Harding, chief executive of the Centre for Economic Security, told CNBC on Monday that China and the US are “confined to existential battles at this point.”
“There’s absolutely no other way to explain all of this. It’s about data flow. It’s about information. It’s about AI. It’s about technology. It’s about defense. China is rapidly expanding its production of ammunition at this time.
“It’s not just about trade and what’s going on in that territory between the two countries. It’s about how they run the economy. This is just beginning and is effectively a 21st century battle,” she added.
Zhiwei Zhang, president and chief economist at PinPoint Asset Management, told CNBC it could take several months to resolve trade tensions, Zhiwei Zhang told CNBC.
“I don’t have much hopes for these trade talks…I don’t think they’ll get an agreement anytime soon,” he told CNBC’s China Connection on Monday.
“For certain issues like rare earths, China has already announced that it has announced that it will grant some kind of permit to foreign companies applying for imports, and has already announced such a temporary solution.
