High-Stakes Showdown: U.S.-China Trade Talks Enter Critical Phase

U.S. and China engaged in intense discussions in London aiming for a breakthrough on export controls that threaten to disrupt trade agreements. While progress remains elusive, both nations are striving to resolve issues around tariffs and supply chain constraints, especially concerning rare earth and semiconductor access.

Trade negotiations between the U.S. and China extended into the evening in London, as both superpowers endeavor to resolve disputes over export controls that jeopardize a fragile tariff agreement. Talks paused for a break and were slated to resume later in the evening, with no substantial details released yet.

U.S. Commerce Secretary Howard Lutnick reported that talks with Chinese economic officials were progressing positively, mirroring President Donald Trump's optimism. Similarly, a White House official stated the talks were proceeding well but withheld specific details, highlighting ongoing negotiations around contested export controls.

The discussions are part of larger efforts to defuse tensions that have disrupted global markets. U.S. economic adviser Kevin Hassett indicated a potential easing of export controls if China accelerates the supply of rare earths, crucial for both economies. This move comes as both sides push for a resolution to prevent a wider economic fallout.

(With inputs from agencies.)