US-China trade talks resume after a month…Follow-up negotiations in London on the 9th

Rare earths and semiconductors export controls expected to be discussed

The United States and China will resume trade negotiations on the 9th, prompted by a phone call between U.S. President Donald Trump and Chinese President Xi Jinping.

According to the Chinese Ministry of Foreign Affairs and other sources on the 8th, Vice Premier He Lifeng is visiting the United Kingdom from today until the 13th and will host the first meeting of the US-China Economic and Trade Consultation Mechanism during his stay.

At the first high-level talks held in Geneva, Switzerland, on the 10th~11th of last month, the US and China agreed to apply significantly reduced tariffs for 90 days and to continue follow-up negotiations through this consultative framework.

President Trump announced on social media platform Truth Social on the 6th, “Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Office of the United States Trade Representative (USTR) Representative Jamieson Greer will hold talks related to a trade deal with the Chinese delegation in London on the 9th.”

China has not disclosed specific attendees, but as with the first trade talks, it is expected that Vice Premier He Lifeng and Vice Minister of Commerce Li Chenggang (China's chief trade negotiator) will participate.

Previously, President Trump had a phone call with President Xi on the 5th and said, “We had a very constructive conversation discussing the details of the recently reached trade agreement with President Xi,” emphasizing, “We have reached a very positive outcome for both countries. There should be no more doubts about the complexity of rare earths.”

During the call, President Xi stated, “In order to steer the great ship of China–US relations on the right course, we must set the direction well,” adding, “It is particularly important to eliminate all disruptions—even acts attempting to undermine it.” He further said, “Both countries need to make effective use of the trade and economic consultation mechanism, maintain an equal relationship, respect each other's interests, and seek outcomes that benefit both sides.”

Both sides held their first high-level trade talks in Geneva last month on the 10th~11th and agreed to significantly reduce tariffs on both sides. US tariffs on China were lowered from 145% to 30%, and Chinese tariffs on the US dropped from 125% to 10%. They also agreed on an additional 90-day grace period for further negotiations.

With negotiations resuming after about a month, attention is focused on whether tensions will ease. Although a joint statement was issued after the Geneva talks, both countries have been clashing over the implementation of the agreement.

The US claims that China has not lifted export restrictions on key minerals including rare earths, while China contends that the US continues to impose discriminatory measures such as export control guidelines on AI semiconductors, sales restrictions on semiconductor design automation (EDA) software, and cancellation of student visas for Chinese nationals.

In the upcoming follow-up negotiations, topics such as China's export control of key minerals to the US and US sanctions on semiconductors to China are expected to be discussed.

Reporter Oh Se-seong from Hankyung.com sesung@hankyung.com