In an effort to end the trade dispute between the United States and China, a delegation of three senior Trump advisers will travel to London on Monday. Forming the U.S. side are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. Their talks with Chinese Vice Premier He Lifeng are part of the China-U.S. Economic and Trade Consultation Mechanism, which will meet for the first time during his visit to the United Kingdom (June 8-13).
President Donald Trump announced the mission on his Truth Social account, expressing confidence that "the meeting will go very well." Earlier this week, Trump had a rare summit with President Xi Jinping, in which both agreed to visit each other soon and let their teams negotiate in the meantime.
The talks follow the tentative 90-day truce reached in Geneva on May 12. At the time, the two superpowers decided to cut some of the sky-high reciprocal tariffs that had been imposed on each other since Trump's return in January. That temporary deal boosted a global stock market rally, with the S&P 500 index, which was nearly 18 % below its February high in April, making up most of its losses.
Nevertheless, fundamental points of contention remain unresolved. The friction surrounding Chinese export restrictions on rare minerals, essential for the chip industry and others, and the U.S. threat of new tariffs underscore the fragility of the bilateral relationship. In addition, issues such as the illegal fentanyl trade, the status of Taiwan and the role of state-owned enterprises in China still play in the background.
America's unpredictable course of announcing new sanctions and then withdrawing them at the last minute has confused international partners and caught global markets off guard. China views its mining commodities and especially critical mineral exports as a strategic tool and could use this to put political pressure on Washington if it causes the U.S. economy to stagnate.
With the Biden administration taking office, the rivalry renewed, but under Trump, the confrontation gained considerable momentum. U.S. officials call China the biggest geopolitical challenger, both economically and militarily. Talks in London will have to reveal whether a lasting breakthrough is possible, or whether the stalemate is merely postponed.
