China and the United States have resumed trade discussions following several months of disputes over tariff policy. Though disagreements remain, the two nations are seeking solutions following the reescalation of tensions.
A May 12 truce paused the trade war for 90 days, but both nations have accused the other of violating the terms of this peace. The U.S. has alleged that China is slow-walking vital minerals, and China has accused the United States of restricting chip exports and Chinese student visas.
Now, however, the two countries are seeking to cooperate on rare earth minerals, semiconductors, and increased exports. This signals a significant victory for the United States as a result of harsh tariff policies.
The meetings, which began on Monday in London, were prompted by a phone call between President Donald Trump and Chinese President Xi Jinping. Trump posted on Truth Social regarding the hour-and-a-half phone call, stating that the two discussed “some of the intricacies of our recently made, and agreed to, Trade Deal” and that the call “resulted in a very positive conclusion for both Countries.”
A hopeful deal on rare earth minerals, which are key to the auto industry, will be highlighted by the U.S. in these negotiations. Chinese officials may seek loosened restrictions on U.S.-dominated ethane gas, which is critical to China’s production of plastic.
While Trump and Xi are expected to meet at some point in the future, this initial negotiation was held by U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. The meeting was to be held with China’s vice premier and main trade official, He Lifeng.
President Trump’s intent behind the trade war remains vitally important, as American manufacturers and consumers have been absorbing many of the costs. Tariffs, when they bring China to the table rather than beating them over the head, produce positive outcomes in negotiation and trade.
When trade hostility is utilized only as an incentive to join the negotiating table, American markets can rest easier, and U.S.–China relations will become less bitter. If, however, tariffs are the goal in and of themselves, costs may be passed on to consumers and producers with no end in sight.
While trade disputes are far from resolved, the meeting signals a de-escalation in tensions between the world’s two largest economies.
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