Top U.S. and Chinese officials will resume trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls for rare earths and other goods that have threatened a fresh rupture between the two superpowers, APA reports citing Reuters.
Investors are hoping for an improvement in ties after the relief sparked by a preliminary deal agreed in Geneva last month gave way to fresh doubts after Washington accused Beijing of blocking exports that are critical to sectors including autos, aerospace, semiconductors and defence.
White House economic adviser Kevin Hassett said on Monday that the U.S. was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths.
U.S. President Donald Trump said the talks were going well: "We're doing well with China. China's not easy."
Trump's often erratic policymaking on tariffs has roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs.
The second round of U.S.-China talks, which followed a rare phone call between Trump and Chinese President Xi Jinping last week, comes at a crucial time for both economies.
Customs data published on Monday showed that China's exports to the U.S. plunged 34.5% in May, the sharpest drop since the outbreak of the COVID-19 pandemic.
While the impact on U.S. inflation and the jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure.
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