US and China Engage in New Trade Talks
The United States and China have commenced a fresh series of negotiations aimed at alleviating trade tensions, which have been heightened due to reciprocal tariff escalations. These discussions are taking place in London, the capital of the United Kingdom.
According to reports from the Chinese news agency Xinhua, China’s Vice Premier for Economic Affairs, Hı Lifıng, has convened with American officials in London as part of the China-US economic and trade consultative mechanism meeting.
On the US side, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are leading the negotiations, while Vice Premier Xi represents China.
Although the talks are being hosted by the UK, British officials have stated that they will remain uninvolved. A statement from the London government emphasized, “We are a nation that champions free trade and we have always said that a trade war is in no one’s interest, so we welcome the talks.” Ahead of the meeting, UK Finance Minister Rachel Reeves had discussions with Bessent and Hi.
Background of the Trade Dispute
On April 2, US President Donald Trump announced additional tariffs on trading partners, including China. In a retaliatory move, China imposed its own tariffs, leading to a tariff battle with the US raising its tariffs on China to 145 percent and China imposing 125 percent tariffs on the US.
As tensions mounted, officials from both countries met in Geneva, Switzerland on May 10-11, to negotiate tariffs. They agreed on a temporary reduction in tariffs for a 90-day period. From May 14, the US reduced tariffs on Chinese goods from 145 percent to 30 percent, while China lowered its tariffs on US goods from 125 percent to 10 percent.
However, in a statement on May 30, Trump accused China of not adhering to many aspects of the Geneva agreement. He expressed his intention to discuss these issues directly with Chinese President Xi Jinping in hopes of finding a resolution.
The US administration accused Beijing of failing to lift restrictions on rare metal exports despite the agreement, leading to new measures. The US imposed controls on the export of artificial intelligence chips, restricted the sale of software for chip design to China, and announced plans to revoke visas for Chinese students linked to the Chinese Communist Party (CCP) or involved in critical research areas.
On June 5, Presidents Trump and Xi held their first phone call since the escalation of trade tensions, agreeing that delegations from both countries should continue efforts to implement the Geneva agreement.
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