US-China trade showdown: where do the talks stand after Day 1?

South China Morning Post

2 days ago

Top officials from China and the United States are expected to start a second day of negotiations in London on Tuesday morning local time, as the two sides strive to de-escalate a stand-off over trade and technology that has sent shock waves across the global economy.
No official statements were released after the first round of talks on Monday, which finished without a deal being agreed. But both sides have sent signals regarding their expectations.
US
Kevin Hassett, director of the National Economic Council, told CNBC that 'immediately after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters'.
According to a report by the Wall Street Journal, citing people familiar with the matter, US President Donald Trump authorised the American delegation to negotiate away recent restrictions on the sale of advanced technologies and other products to China ahead of the London talks.
The recent US export controls cover jet engines and related parts, though these were never publicly announced by Washington; design software Chinese companies need to make advanced microchips; and ethane, a component of natural gas that is used to manufacture plastics, the report said.
China