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US trade secretary Howard Lutnick said on Tuesday Trade discussions with China went well because the two parties met for a second day in London, seeking a breakthrough on the export controls which threatened a new rupture between the superpowers.
After agreeing to step back from a full -fledged commercial embargo during a first cycle of talks in Geneva in May, the two parties are now looking for after having accused each other of having tried to strangle the supply chains with an export control round.
The economic adviser of the White House, Kevin Hassett, said on Monday that the United States could raise export controls recently imposed on goods such as semiconductors if China has accelerated the delivery of rare earths and magnets that are crucial for its economy.
The inter-explosion on rare earths, which stimulated the alarm in conference rooms and factory floors in the world, intervened after the preliminary agreement last month in Geneva to reduce prices, which attenuated the fears of investors that a trade war leads to a global slowdown.
“(The discussions continued) all day yesterday, and I expect (them) all day today,” Larick told journalists. “They are fine and we spend a lot of time together.”
Trump’s changing tariff policies have tormented world markets, triggered congestion and confusion in the main ports, and cost tens of billions of dollars in lost sales and higher costs.
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But the markets represented a large part of the losses they suffered after Trump unveiled his radical “liberation day” rates in April, helped by reset in Geneva between the two biggest economies in the world.
The second round of American-Chinese discussions, which followed a rare phone call between Trump and Chinese President Xi Jinping last week, arrives at a crucial time for the two savings.
Customs data published on Monday showed that Chinese exports to the United States have dived 34.5% in May, the strongest decline since the cocovid pandemic.
Although the impact on the inflation of the United States and its job market has so far been stifled, the prices have hammered the confidence of American affairs and households and the dollar remains under pressure.
The talks were led by the US Secretary of the Treasury Scott Bessent, Lutnick and the US trade representative Jamieson Greer, the Chinese contingent led by Deputy Prime Minister He Lifeng.
The two games met for almost seven hours on Monday and resumed just before 1000 GMT on Tuesday, the two should issue updates later during the day.
The inclusion of Lutnick, whose agency oversees export controls for the United States, indicates how much central land has become. He did not attend the Geneva talks, when the countries concluded a 90 -day agreement to retreat some of the three -digit prices they had placed on each other.
China has a quasi-monopoly on rare lands, a crucial component in electric vehicle engines, and its decision in April to suspend the exports of a wide range of critical minerals and words with global supply chains.
In May, the United States responded by interrupting the semiconductor and chemical and aviation equipment design software shipments, revoining export licenses that had been published before.
Hassett said he expected the United States export controls to be relaxed and rare earths are released in volume once the two parties have gripped hands in London.
But he said that any relaxation would not include the “very, very, very, produced Nvidia”, referring to the most advanced artificial intelligence fleas of Nvidia which have been prevented from going to China for concerns about potential military applications.
“I am talking about possible export controls on other semiconductors who are also very important for them,” he said.
–Additional Sachin Ravikumar reports. Writing by Kate Holton. Edition by David Evans and Mark Potter
