Tariff war: US, Chinese officials meet in London for second round of trade negotiations

Key Concepts:

• US-China Trade Talks: Negotiations in London to address tariff disputes.
• Rare Earths: Strategic minerals exported by China.
• Chip Exports: US restrictions on semiconductor exports to China.
• Non-Tariff Measures: Trade barriers other than tariffs.
• Mutually Beneficial Solutions: Desired outcome of the trade talks.

Trade Talks in London:

American and Chinese officials convened for a second day of trade talks in London, aiming to reinforce a fragile truce concerning tariffs. The negotiations in London are expected to center on two key issues: Beijing's exports of rare earth minerals and Washington's limitations on chip exports.

US Perspective:

US Commerce Secretary Howard Lutnik characterized the discussions as "going well." President Donald Trump also voiced optimism, stating, "We are doing well with China... I'm only getting good reports. It's a little early, but they'll be calling in soon." Trump emphasized the US desire to "open up China," suggesting that failure to do so might halt further engagement. He framed opening up China as beneficial for both China and the rest of the world.

Chinese Perspective:

CNN's Tan Sui in Beijing reported on China's perspective. Two opinion pieces in the People's Daily, a Communist Party mouthpiece, were published. One commentary asserted China's "legitimate rights to safeguard its own natural resources" and highlighted that China has approved multiple applications for rare earth-related exports, expressing readiness for dialogue with other nations. The second commentary criticized US export controls on high-tech products, arguing they harm American companies and that the US has "politicized trade issues." China expressed hope for "mutually beneficial solutions."

Interconnected Issues and Potential Violations:

Analysts suggest China views the talks as an opportunity to emphasize the interconnectedness of these issues. Beijing has made it clear that further non-tariff measures would be considered a violation of the spirit of any agreement.

Synthesis/Conclusion:

The US-China trade talks in London aimed to solidify a fragile truce on tariffs, focusing on rare earth exports and chip restrictions. While both sides expressed optimism, China emphasized its rights regarding natural resources and criticized US export controls. The interconnectedness of these issues and the potential for non-tariff measures to undermine any agreement remain key concerns. The desired outcome is "mutually beneficial solutions," but the path to achieving them remains complex.