Day Two of US-China Talks…Discussions on Rare Earths and Chip Technology Controls

China signals rare earth supply; US, eases export controls on chip design SW, etc.

Analysts say "US technology control easing is a win for China"

The United States and China resumed their talks in London for the second consecutive day on the 10th (local time).

Negotiation teams led by Scott Bessent, United States Secretary of the Treasury, and He Lifeng, Vice Premier of the People's Republic of China, reconvened at Lancaster House shortly after 10:40 a.m.

Howard Lutnick, United States Secretary of Commerce, told reporters that discussions were proceeding smoothly and were expected to last throughout the day.

President Trump said at the White House the previous day, "China is not an easy country," but added, "I'm only receiving good reports."

A key issue this week is reaffirming the terms of the agreement made last month in Geneva. In this deal, it was reported that China would allow increased rare earth supplies to US customers. However, there was criticism that China's response was too slow, leading to supply shortages for automobiles in the US.

In return, the Trump administration has prepared to lift a series of restrictions related to chip design software, jet engine parts, chemicals, and nuclear materials, according to sources familiar with the matter.

Dexter Roberts, a senior fellow at the Atlantic Council Global China Hub, said, "If the United States lifts some export controls on technology, it would be a win for China." He emphasized, "Recalling the Biden administration, it is hard to even imagine the US relaxing controls."

China and the US also agreed to a 90-day tariff truce until mid-August. Simultaneously, Trump's trade team is preparing to reach bilateral agreements with India, Japan, South Korea, and several other countries before July 9th.

Guest reporter Kim Jung-ah kja@hankyung.com