US-China trade deal talks: Top delegates meet in London; rare earth minerals, visa issues to be discussed

Top US and Chinese officials met in London on Monday in fresh efforts to stabilise the fragile pause in their trade fight, which has shaken global markets. The Chinese delegation, led by vice premier He Lifeng and commerce minister Wang Wentao, met with US commerce secretary Howard Lutnick, treasury secretary Scott Bessent and trade representative Jamieson Greer at the historic Lancaster House, a grand 19th-century mansion near Buckingham Palace. However, the discussions may extend into Tuesday, according to sources familiar with the matter cited by AP. The latest round of diplomacy follows a tentative agreement in Geneva last month, where both sides committed to a 90-day pause on the steep tariffs, some over 100%, they had slapped on each other in a tit-for-tat escalation. The temporary truce, announced on May 12, offered some breathing space, though tensions remain high. Since the Geneva breakthrough, the two nations have had disagreements over advanced semiconductors used in artificial intelligence, visa restrictions for Chinese students in the US, and the export of rare earth mineral, critical raw materials used in electric vehicles and consumer electronics.Rare earths issue is likely to be a key topic in the London talks, after China began mandating export licences for producers dealing in seven of these materials in April. The move triggered supply shortages, sending global automakers scrambling and raising fears of production halts. Speaking to CNBC ahead of the talks, US economic adviser Kevin Hassett said he anticipated a short meeting with "a big, strong handshake” on the rare earth issue. President Donald Trump and Chinese President Xi Jinping had spoken over phone last Thursday, with Trump later announcing on social media that trade discussions would resume in London. Despite hosting the meeting, the UK government is not a party to the negotiations. However, chancellor Rachel Reeves and business secretary Jonathan Reynolds held separate meetings with key figures from both sides. “We are a nation that champions free trade and have always been clear that a trade war is in nobody’s interests, so we welcome these talks,” a spokesperson for the UK government said.