US and Chinese officials meet in London for pivotal trade talks
# US and Chinese officials meet in London for pivotal trade talks
*Top U.S. and Chinese officials are meeting in London to address a high-stakes trade dispute that has expanded from tariffs to rare earth restrictions, threatening global supply chains and economic growth. The talks aim to revive a preliminary Geneva agreement and secure commitments on export controls. Both economies are under strain from ongoing trade tensions, with rare earths central to the discussions.*
*Image: [Toby Melville/Reuters](https://www.reuters.com/world/china/key-us-china-trade-talks-set-monday-london-2025-06-09/)*
## Key Points
– Sides look to get Geneva trade pact back on track
– Talks in London could last for two days
– U.S. wants ‘handshake’ on export controls, says adviser
– Inclusion of Lutnick signals importance of rare earths
– Geneva deal had fostered a global relief rally in stocks
## Background
The meeting at Lancaster House marks the first of likely two days of talks between U.S. and Chinese officials, aiming to revive a preliminary agreement struck last month in Geneva. Since then, the U.S. has accused China of slow-walking on its commitments, particularly around rare earths shipments.
## Rare Earths at the Center
White House economic adviser Kevin Hassett said, “The purpose of the meeting today is to make sure that they’re serious, but to literally get handshakes.” He added that the U.S. expects export controls to be eased and rare earths released in volume immediately afterwards.
China holds a near-monopoly on rare earth magnets, crucial for electric vehicle motors. The inclusion of Commerce Secretary Howard Lutnick, who oversees export controls, highlights the centrality of rare earths in the talks.
## Economic Impact
– China’s exports to the U.S. plunged 34.5% year-on-year in May, the sharpest drop since February 2020.
– In the U.S., business and household confidence has dropped, and Q1 GDP contracted due to a surge in imports.
– The preliminary Geneva deal sparked a global relief rally in stock markets.
## Recent Developments
The talks follow a phone call between President Trump and President Xi, where Xi agreed to resume shipments of rare earth minerals and magnets to the U.S. China has since granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers.
White House spokeswoman Karoline Leavitt said the U.S. hopes to build on Geneva’s progress toward more comprehensive trade talks.
## Expert View
Ian Bremmer, president of the Eurasia Group, commented: “Everyone around Trump is still hawkish and so a breakthrough U.S.-China trade deal is unlikely, especially in the context of other deals that are further along and prioritized.”
## Conclusion
The outcome of the London talks could shape the future of global supply chains and economic relations between the world’s two largest economies. Observers are watching closely for signs of a breakthrough or further escalation.
**Source:** [Reuters](https://www.reuters.com/world/china/key-us-china-trade-talks-set-monday-london-2025-06-09/)
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**Meta Description:** US and Chinese officials meet in London for pivotal trade talks on tariffs and rare earths, aiming to revive a Geneva agreement and stabilize global supply chains.
**Internal Link:** Read our earlier report on [China’s rare earth export controls](https://www.reuters.com/business/autos-transportation/what-know-about-chinas-rare-earth-export-controls-2025-06-04/).
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