U.S.-China Trade Talks in London: A New Hope?

This Monday, senior officials from the United States and China are set to convene in London, aiming to alleviate the ongoing trade tensions. The dispute, which initially involved reciprocal tariffs, has expanded to include export controls on essential items crucial to global supply chains.

The discussions in London seek to build on a preliminary agreement reached in Geneva. Although this agreement temporarily de-escalated tensions and offered relief to beleaguered investors, broader issues remain unresolved. Additionally, China's resumption of rare earths shipments remains a critical point of negotiation.

The meeting arrives shortly after a phone call between U.S. President Donald Trump and China's President Xi Jinping— their first conversation since Trump's recent inauguration. Both leaders expressed optimism, yet fundamental disagreements, like trade practices and political issues, continue to loom large.

(With inputs from agencies.)