LONDON — American and Chinese delegations arrived at Lancaster House in London on Monday morning to begin a new round of trade negotiations, with rare-earth minerals and advanced technology at the center of the talks. The meeting follows a phone conversation last week between President Donald Trump and President Xi Jinping that helped pave the way for the diplomatic thaw.
“The talks have begun,” a U.S. official said moments after the delegations entered Lancaster House, a historic and grand government building near St. James’s Palace that is frequently used by the UK government for high-level diplomatic events, including international summits and state functions.
The two sides are looking to move past a breakdown in Geneva last month, where an initial agreement to scale back tariffs—some of which had climbed above 100 percent—quickly unraveled amid mutual accusations of bad faith. Trump, citing progress on restoring flows of critical minerals from China, predicted the London summit would go “very well.”
Beijing signaled tentative movement ahead of the talks by announcing approvals for some rare-earth export applications, though it did not clarify which nations or sectors would benefit.
One person familiar with the negotiations described them as “Operation Warp Speed for trade,” a reference to the rapid escalation of talks involving top-level officials from both governments. Rather than the usual months of quiet, bureaucratic back-and-forth leading up to a ceremonial meeting, these negotiations came together in a matter of days.
“It’s the Trump effect,” one U.S. official said.
Treasury Secretary Scott Bessent is leading the American delegation, joined by Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. Lutnick’s participation is especially notable given his role in overseeing export controls on advanced technologies—a sign Trump may be open to softening some of the restrictions seen as hindering China’s long-term development.
Even as negotiations got underway, the situation remained fluid. It was unclear how long the talks would last, though they are expected to continue into Tuesday.
Trade tensions have escalated sharply in recent months after the Trump administration increased tariffs on a wide array of Chinese imports, prompting swift retaliation from Beijing. The Geneva deal was supposed to usher in a broader de-escalation, but talks quickly stalled amid renewed conflict over restrictions on Chinese tech companies and student visas.
U.S. officials have pointed to a sharp decline in rare-earth magnet imports—critical components in electric vehicles, defense systems, and manufacturing. Chinese officials, for their part, have bristled at American controls on semiconductor equipment, jet engines, and the movement of hundreds of thousands of Chinese students and researchers.
Although markets responded positively to the Trump-Xi call, expectations for a major breakthrough remain modest.
President Xi, grappling with deflation, rising unemployment, and reported unrest among top military leaders, appears motivated to reach an accord. He has publicly urged the U.S. to undo what he calls “negative measures” aimed at curbing China’s economic growth.
Following their phone call, Trump reportedly told Xi that Chinese students would continue to be welcomed in the U.S., later adding it would be his “honor” to host them.
Read the full article here