Implementing the consensus of the leaders' phone call, focusing on tariffs, technology, and rare earths, the China-US economic and trade consultations are held today in London.
On May 10, 2025, Geneva, Switzerland, the high-level economic and trade talks between China and the US were held.
Chinese Foreign Ministry spokesperson announced on the 7th that at the invitation of the British government, Politburo member of the CPC Central Committee, Vice Premier of the State Council He Lifeng will visit the UK from June 8 to 13. During this period, he will hold the first meeting of the China-US economic and trade consultation mechanism with the US side. US President Trump also posted on social media on the 6th local time, stating that Treasury Secretary Besten, Commerce Secretary Luoteknik, and Trade Representative Griller will meet with Chinese representatives in London on the 9th. This is the second round of economic and trade consultations since the outbreak of the US-China tariff war. After reaching a consensus in the Geneva talks on May 12, China seriously and earnestly implemented the agreement, while the US took negative measures such as further restrictions on Chinese chip products. Several Chinese experts interviewed by the Global Times on the 8th emphasized that this consultation was directly promoted by the recent phone call between the two heads of state, indicating that both sides hope to find effective ways to resolve obstacles in their relationship through continuous dialogue and in-depth consultations. Regarding the US's hype about China's rare earth export control while refusing to mention its extreme pressure on China, these experts stressed that the China-US economic and trade negotiations must uphold an equal attitude, respect each other's concerns, and only then can they strive for a win-win result.
"Global markets are highly concerned."
According to a report by Singapore's Lianhe Zaobao on the 8th, less than two days after the phone call between the two leaders on June 5, US President Trump announced on social platforms on the 6th local time that US economic officials would hold talks with Chinese representatives in London on Monday (June 9). Trump also said, "The talks should go smoothly." The report stated that the economic and trade consultations between China and the US in London will focus on tariffs, technology, and rare earths.
France International Radio reported that the resumption of the new round of China-US economic and trade consultations aims to resolve the trade disputes between the two largest economies in the world and has attracted high attention from global markets.
Reuters reported that this consultation takes place amid weeks of continued tension in US-China trade relations. On May 12, the high-level economic and trade talks in Geneva reached a consensus to significantly reduce bilateral tariffs, causing a strong rebound in global stock markets. However, the report noted that the temporary agreement reached in Geneva did not touch upon deeper issues in the bilateral economic and trade relationship. After the Geneva talks, the US further tightened export controls on artificial intelligence and advanced chips. This led to harsh criticism from China's Ministry of Commerce, which accused the US of "depriving other countries of the right to develop advanced computing chips and artificial intelligence and other high-tech industries." Meanwhile, China's measures on rare earth exports have caused concern among the US domestic industry regarding potential impacts.
The Associated Press reported that amidst these disputes severely impacting bilateral relations and threatening fragile tariff agreements, the leaders of China and the US spoke on the phone on June 5. Both heads of state agreed that their teams should continue to implement the Geneva consensus and hold the next round of talks as soon as possible.
Song Guoyou, deputy director of the Center for American Studies at Fudan University, told the Global Times on the 8th that this economic and trade consultation mechanism's first meeting in London is directly driven by the phone call between the two heads of state, making future China-US economic and trade consultations more stable and institutionalized. This consultation will help further clarify the cognitive differences existing between China and the US after the high-level economic and trade talks in Geneva.
Professor Li Haidong of the Diplomatic Academy told the Global Times on the 8th that this consultation is aimed at implementing the consensus of the phone call between the heads of state of China and the US, gradually easing various issues in the economic and trade field through continuous negotiations. This indicates that after experiencing significant fluctuations in their economic and trade relations, there is a shared need for dialogue and coordination to stabilize bilateral relations. He believes that compared to the Geneva talks, the broader range of US negotiators suggests that the scope of topics discussed will also be wider.
For this China-US economic and trade consultation, the host country, Britain, is clearly excited. "The UK scores a diplomatic victory in hosting the China-US trade negotiations," reported Sky News UK. The economic and trade consultations between the two largest economies in the world held in London are considered a "diplomatic victory" for the host country, the UK. Besides geographical convenience, British government sources stated that the UK's current geopolitical advantage enables it to act as a bridge and promoter: on one hand, Sino-British relations are currently "resetting"; on the other hand, it may also greatly assist the UK in seeking a trade agreement with the US to cancel or significantly reduce tariffs imposed by the US.
Urging the US to Cancel "Negative Measures"
International media noticed that unlike the Geneva talks between China and the US, this time Trump announced that Commerce Secretary Luoteknik will participate in the China-US economic and trade consultations in London alongside Treasury Secretary Besten and Trade Representative Griller. CNN reported that since the Bureau of Industry and Security under the US Department of Commerce is responsible for supervising export controls, US technological export restrictions on China may become a key topic in this round of consultations. Some analysts believe that US technological export controls "are no longer an un-negotiable area."
Bloomberg reported that Luoteknik's participation in the new round of consultations might indicate that the US is willing to reconsider some technical restrictions hindering China's long-term growth targets. However, the South China Morning Post in Hong Kong believed that Luoteknik has always supported high tariffs, and Trade Representative Griller is closely related to the former tough Trade Representative Litesizer. It is expected that he will adopt a tough stance on tariff issues. The inclusion of these two individuals in the US negotiation team may make this China-US economic and trade consultation face a daunting task.
Just as China and the US are about to hold economic and trade consultations, Reuters reported on the 6th that according to four informed sources, the US Department of Commerce has issued bans to companies, suspending licenses for US nuclear power equipment suppliers to sell products to Chinese nuclear power plants. In response, the report cited a statement released by the Chinese Embassy in the US on the same day, emphasizing that during the leaders' phone call, both sides emphasized that they should earnestly implement the agreement reached in Geneva on May 12. China has been "seriously" executing this agreement, and its control over rare earth exports complies with international conventions, not targeting any specific country. The statement stressed, "The US should recognize the progress made and cancel the negative measures taken against China."
Regarding this London economic and trade consultation, the US side had previously complained and emphasized China's rare earth export control but rarely mentioned the US's restrictions on China's chips, artificial intelligence, and other technology industries after the Geneva talks. In fact, on the day the announcement of the China-US London economic and trade consultation was made, the Ministry of Commerce of China expressed regarding the control measures on medium and heavy rare earths that these items have dual civilian and military applications, and their export control complies with international practices. The spokesperson stated that as a responsible major country, China fully considers the reasonable needs and concerns of all countries in civilian fields, reviews export license applications for rare earth-related items according to law, has legally approved a certain number of compliant applications, and will continue to strengthen the approval work for compliant applications. China is willing to further enhance communication and dialogue on export control matters with relevant countries to promote convenient and compliant trade.
“(The US uses) chips to besiege China, (and China uses) rare earths to corner the US.” Singapore's Lianhe Zaobao reported that the "rare earth vs. chips" non-smoke warfare sparked by the tariff war highlights that technology and resources have become key bargaining chips in great power games. The report quoted analyses from scholars in several countries, stating that China's "rare earth card" undoubtedly hit the US where it hurts; otherwise, Washington would not have hurried to negotiate with China in Geneva and later complained in frustration about the impending shortage of rare earth supplies. A clear example is that US automakers recently complained about the shortage of rare earth magnets leading to plant shutdowns, and even the only operational Mountain Pass rare earth mine in California has had to export its rare earths to China for refining.
Bloomberg cited an assessment by Cognizant Consulting's deputy director, Combs, who evaluated that the US needs at least ten years to摆脱对中国 rare earth dependence, while Chinese companies have already developed effective alternatives for most US chips. "China is making progress in this standoff," Combs said.
American Enterprises in China Refuse to Return to the US
Despite some in the US attempting to show a tough stance before this round of economic and trade consultations, even many American enterprises operating in China do not want to return to the US. Hong Kong's South China Morning Post reported on the 6th that the latest survey results from the American Chamber of Commerce in China showed that US tariffs have put many American businesses operating in China in a difficult situation. At the same time, the US government's attempt to promote the return of manufacturing through tariffs will fail. The report stated that despite challenges, most surveyed American businesses do not plan to exit China. The American Chamber of Commerce in China stated in a statement, "Instead, they are localizing operations or transferring part of production to third countries, with no company reporting a transfer of production back to the US." The survey was conducted from May 23 to 28, receiving responses from 112 American businesses in various sectors operating in China.
Li Haidong said that unhealthy thinking still exists in the US, attempting to restrict the development rights and space of negotiating partners. For the China-US economic and trade consultations to achieve a win-win result, they must uphold an equal attitude, respect each other's concerns, and cooperate mutually beneficially.
On the 6th, the Chinese Embassy in the US hosted the "Tea and World Harmony, Joy Across East and West · Gathering" event. Ambassador of China to the US Xie Feng stated that neither a cold war nor a tariff war can be fought or won, and neither economic decoupling nor cultural decoupling will gain support or succeed. Xie Feng said that the current China-US relations are at a critical historical juncture. He hopes that the US will move in the same direction as China, implement the important consensuses reached during the leaders' phone call, revoke the wrong measures against China, and create necessary conditions for the return of China-US relations to normalcy. He hopes that insightful individuals from both countries will voice objective and rational opinions, build bridges for exchanges and cooperation, and play an active role in stabilizing, healthy, and sustainable development of China-US relations.
Special correspondent of the Global Times in the US, Xiao Da, and reporter Chen Zishuai, Wang Yi of the Global Times.
Original article: https://www.toutiao.com/article/7513741090189591080/
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