Talks between the US and China kicked off in London on Monday, with the US signaling a willingness to remove restrictions on exports in exchange for assurances that China is easing limits on rare earth shipments.
The Trump administration expects that "after the handshake" in London, any export controls from the US will be eased and rare earths will be released by China, Kevin Hassett, head of the at the White House's National Economic Council, told CNBC. It was the clearest signal yet that the US is willing to offer such a concession.
The first round of negotiations since the teams met a month ago is aimed at restoring confidence that both are living up to commitments made in Geneva. During those discussions, Washington and Beijing agreed to lower crippling tariffs for 90 days to allow time to hammer out ways to address a trade imbalance that the Trump administration blames on an unfair playing field.
Aim is to Dodge Clash
The confusion after the Geneva meeting about China's rare earth export-permitting process, combined with US limits on tech shipments and Washington's recent crackdown on Chinese student visas, underscore the complexity of deal-making between China and the US.
"They left too many things open to interpretation," said Josh Lipsky, chair of international economics at the Atlantic Council. The US and China "just want to get back to where they were in Switzerland with a few more agreements down on paper to understand what is gonna be licensed, what gets permitted, what doesn't," he added.
A phone call last week between President Donald Trump and his counterpart Xi Jinping appeared to give fresh momentum to reviving talks and reaching a deal.
On Monday at London's Lancaster HouseUS Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer will meet a Chinese delegation led by Vice Premier He Lifeng.
The addition of Lutnick, who's in charge of curbs on the sale of advanced technology, signals Trump may be willing to consider reversing some of the restrictions that threaten to hobble China's long-term growth ambitions, ranging from tech supplies to jet engine parts.
The Trump administration expects that "after the handshake" in London, any export controls from the US will be eased and rare earths will be released by China, Kevin Hassett, head of the at the White House's National Economic Council, told CNBC. It was the clearest signal yet that the US is willing to offer such a concession.
The first round of negotiations since the teams met a month ago is aimed at restoring confidence that both are living up to commitments made in Geneva. During those discussions, Washington and Beijing agreed to lower crippling tariffs for 90 days to allow time to hammer out ways to address a trade imbalance that the Trump administration blames on an unfair playing field.
Aim is to Dodge Clash
The confusion after the Geneva meeting about China's rare earth export-permitting process, combined with US limits on tech shipments and Washington's recent crackdown on Chinese student visas, underscore the complexity of deal-making between China and the US.
"They left too many things open to interpretation," said Josh Lipsky, chair of international economics at the Atlantic Council. The US and China "just want to get back to where they were in Switzerland with a few more agreements down on paper to understand what is gonna be licensed, what gets permitted, what doesn't," he added.
A phone call last week between President Donald Trump and his counterpart Xi Jinping appeared to give fresh momentum to reviving talks and reaching a deal.
On Monday at London's Lancaster HouseUS Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer will meet a Chinese delegation led by Vice Premier He Lifeng.
The addition of Lutnick, who's in charge of curbs on the sale of advanced technology, signals Trump may be willing to consider reversing some of the restrictions that threaten to hobble China's long-term growth ambitions, ranging from tech supplies to jet engine parts.
