London (Reuters)-The main authorities of the United States and China resume commercial negotiations on the second day in London, expecting to ensure a breakthrough in rare land export controls and other products that threatened a new break between the two superpowers.
Investors expect an improvement in ties after the relief caused by a preliminary agreement signed in Geneva last month gave way to new questions after Washington accused Beijing of blocking exports that are essential to sectors such as automotive, aerospace, semiconductors and defense.
White House Economic Advisor Kevin Hassett said on Monday that the US would likely agree to suspend the export controls of some semiconductors in exchange for China to accelerate rare land delivery.
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US President Donald Trump said the negotiations were doing well: “We’re doing well with China. China is not easy.”
Trump’s frequently erratic policy in relation to tariffs has stirred global markets, caused congestion and confusion in major ports, and costs to dozens of billions of dollars in lost sales and higher costs.
The second round of negotiations between the US and China, which followed a rare telephone connection between Trump and Chinese President Xi Jinping last week, occurs at a crucial time for both economies.
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Customs published on Monday showed that China’s exports to the US fell 34.5% in May, the largest drop since the hatching of the Covid-19 pandemic pandemic.
Although the impact on US inflation and labor market has been discreet so far, tariffs have affected the confidence of US companies and families and the dollar remains under pressure.
Both sides, led in the negotiations by US Treasury Secretary Scott Bessent, Trade Secretary Howard Lutnick, and US Commerce Representative Jamieson Greer, with Chinese contingent led by vice-prime minister He Lifeng, are meeting at Lancaster House in the British capital.
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The negotiations lasted almost seven hours on Monday and resumed around 6am (Brasília time) on Tuesday, with the expectation that both sides will tell updates on the day.
