London Hosts Crucial Round of Trade Talks
US-China trade talks opened in London on Monday, aiming to address rising tensions over tariffs and new restrictions. The discussions follow a fragile truce agreed in Geneva last month to pause mutual tariffs exceeding 100 percent for 90 days.
Fresh Disputes Emerge Since Geneva Truce
New disagreements have surfaced since the 12 May Geneva announcement. These include AI chip export controls, rare earth exports, and student visa cancellations. Both governments have intensified rhetoric, threatening progress made during the recent ceasefire.
Trump and Xi Discuss Situation by Phone
US President Donald Trump and Chinese President Xi Jinping spoke last Thursday in an attempt to ease friction. Trump announced the London meeting via social media the next day. He reiterated concern about Beijing’s trade actions, saying, “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.”
Semiconductor Restrictions Spark Controversy
Tensions heightened after the US Commerce Department issued new guidelines targeting Huawei’s Ascend AI chips. Washington claimed the chips use restricted US technology. The Chinese Commerce Ministry criticised the move and said, “The Chinese side urges the US side to immediately correct its erroneous practices.”
US Secretary Joins Talks Amid Chip Dispute
US Commerce Secretary Howard Lutnick, who did not attend the Geneva meeting, joined the London talks. Analysts interpret his presence as willingness to address Beijing’s concerns over export controls.
China’s Rare Earth Policies Raise Global Concerns
In April, China started requiring export licences for seven rare earth elements. These elements are vital for automakers, robotics, and defence systems. Resulting shortages alarmed global manufacturers. Some feared halting production due to dwindling supplies.
China Addresses Rare Earth Licensing Delays
China’s Commerce Ministry issued a statement on Saturday addressing the issue. It said, “It had granted some approvals and will continue to strengthen the approval of applications that comply with regulations.” The ministry acknowledged concerns raised by European and global firms.
Student Visa Revocations Stir Further Dispute
Another point of contention involves Chinese student visas. The US began revoking visas of some Chinese nationals. Though not typically part of trade talks, Beijing included the issue in its complaint. It said the US undermined the Geneva agreement with this move.
China Alleges Violations of Truce Terms
China’s Commerce Ministry said the US breached the Geneva consensus. The ministry pointed to chip export rules, halting chip software sales, and the visa issue.
Trade War Continues to Impact Global Markets
The renewed disputes highlight the fragility of the current truce. Both sides agreed to pause tariffs for three months, but implementation issues remain. Tariffs previously targeted over $500 billion worth of goods, impacting markets and manufacturing worldwide.
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London Talks May Shape Future of Tariff Truce
The London negotiations could determine whether the truce holds or collapses under rising tension. Observers expect the talks to include review of the 90-day Geneva roadmap. Key decisions may influence trade policies and tech access rules moving forward.
AI and Tech Controls Remain Central Issues
Export restrictions on semiconductors and related software remain core points of friction. Washington insists on safeguarding its AI technologies, citing national security risks. Beijing sees the restrictions as targeted moves to hinder its tech development.
Rare Earths Become Key Strategic Resource
China controls most of the global supply chain for rare earths. These materials are critical for electric vehicles, wind turbines, and defence hardware. Analysts say China may use this leverage to counter US pressure on technology access.
Visa Crackdown Seen as Escalation
US authorities cited national security concerns in revoking Chinese student visas. China argues the policy undermines academic exchanges and violates the spirit of the Geneva deal.
Diplomatic Outcomes Remain Uncertain
The London talks could either ease tensions or escalate them further. Both sides face economic and strategic pressures. As discussions continue, global markets remain sensitive to the outcomes.
