Yigit Taha OZTURK 
A tense atmosphere settled in central London as the world’s two largest economies came face to face once again. Trade tensions that have shaken global markets for over a year returned to the spotlight—this time at Lancaster House—where top officials from both the US and China met to seek common ground.
The delegation included US Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer, meeting China’s Vice Premier He Lifeng. The talks center around rare earth exports from China and Beijing’s access to advanced US technologies, particularly semiconductor chips.
Tariff Truce At Risk?
Although a temporary tariff truce was brokered in Geneva last month, accusations of non-compliance have followed quickly. Greer claimed China failed to remove export restrictions on rare earth magnets. Meanwhile, Beijing argued the US violated the agreement by halting sales of chip design software, discouraging the use of components from Huawei, and restricting student visas.
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The US had reduced tariffs on Chinese goods to 30% while China lowered its rates to 10%, both agreeing on a 90-day period to negotiate a full deal. Yet, both sides have since accused one another of backtracking.
Leadership Dialogue Offers Hope
The current meeting follows a rare phone call between Donald Trump and Xi Jinping—the first direct contact since the trade war began in February. Trump described it as “a very good talk,” adding that Xi agreed to resume trade in rare earth materials.
However, White House Economic Council Director Kevin Hassett told CBS News that while exports have resumed, they still fall short of what was agreed in Geneva.
Economic Stakes Are Global
With China responsible for mining 69% of the world’s rare earth elements—used in everything from smartphones to electric vehicles—any shift in supply dynamics will ripple across global markets.
Prior to this round of talks, He Lifeng also met with UK Chancellor Rachel Reeves, discussing closer cooperation on finance and economics.
Meanwhile, Trump‘s aggressive trade policy has raised concerns among economists. The OECD recently revised its global growth forecast downward to 2.9%, citing rising trade barriers.
New data from Beijing revealed May exports rose 4.8% year-over-year, while imports fell 3.4%—a much steeper decline than expected.
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