Crisis at Crossroads: US-China Trade Talks in London

High-level delegations from the United States and China convened in London on Monday to stabilize a fragile truce in their ongoing trade dispute—a conflict that has significantly impacted the global economy. Led by Vice Premier He Lifeng, China's team engaged in discussions with US counterparts, including Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer, at the historic Lancaster House.

The talks, which could extend into Tuesday, come in the wake of last month's negotiations in Geneva that temporarily paused the escalating trade war. Both nations announced a 90-day suspension of their steep tariffs, easing global recession fears. However, tensions have persisted, especially regarding advanced semiconductors, student visas, and the crucial 'rare earth' minerals essential to various industries.

President Donald Trump and Chinese leader Xi Jinping discussed trade relations by phone last Thursday, prompting Trump to confirm that talks would resume in London. Rare earth exports are expected to dominate discussions, with Beijing making moves to address worldwide shortages that have caused significant concern in automotive and other industries. Meanwhile, the UK government, though not an active participant in the negotiations, serves as the venue provider and has expressed hopes for peaceful resolution as a proponent of free trade.

(With inputs from agencies.)