U.S.-China Trade Talks Aim to Break Stalemate on Rare Earths

U.S. and China extended trade talks in London to address disputes, particularly over rare earths. This conflict threatens global supply chains. Both countries aim to revive a temporary truce from Geneva even as U.S. economic strain is evident. President Trump remains optimistic about the discussions.

Top economic officials from the U.S. and China are holding extended trade talks in London to address widening disputes, ranging from tariffs to rare earth restrictions. This contentious relationship is threatening a shock to global supply chains and could slow economic growth.

The discussions at Lancaster House come as U.S. President Donald Trump expressed optimism about the negotiations. Pressure mounts on both economies with a casual truce from Geneva showing minimal impact. U.S. and China both stand to benefit from resolving rare earth trade barriers.

The trade talks hold significant stakes, given China's near-monopoly on rare earth magnets, crucial for electric vehicles and other technologies. The inclusion of U.S. Commerce Secretary Howard Lutnick signifies the importance of addressing export controls amidst strained bilateral trade ties.

(With inputs from agencies.)