
Key US-China trade talks set for Monday in London
LONDON: Top US and Chinese officials will sit down in London on Monday for talks aimed at defusing the high-stakes trade dispute between the two superpowers that has widened in recent weeks beyond tit-for-tat tariffs to export controls over goods and components critical to global supply chains.
At a still-undisclosed venue in London, the two sides will try to get back on track with a preliminary agreement struck last month in Geneva that had briefly lowered the temperature between Washington and Beijing and fostered relief among investors battered for months by US President Donald Trump's cascade of tariff orders since his return to the White House in January.
"The next round of trade talks between the US and China will be held in the UK on Monday," a UK government spokesperson said on Sunday.
"We are a nation that champions free trade and have always been clear that a trade war is in nobody's interests, so we welcome these talks."
Gathering there will be a US delegation led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, and a Chinese contingent helmed by Vice Premier He Lifeng.
The second-round of meetings comes four days after Trump and Chinese leader Xi Jinping spoke by phone, their first direct interaction since Trump's Jan 20 inauguration.
During the more than one-hour-long call, Xi told Trump to back down from trade measures that roiled the global economy and warned him against threatening steps on Taiwan, according to a Chinese government summary.
But Trump said on social media the talks focused primarily on trade led to "a very positive conclusion," setting the stage for Monday's meeting in London.
The next day, Trump said Xi had agreed to resume shipments to the US of rare earths minerals and magnets.
China's decision in April to suspend exports of a wide range of critical minerals and magnets upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.
That had become a particular pain point for the US in the weeks after the two sides had struck a preliminary rapprochement in talks held in Switzerland.
There, both had agreed to reduce steep import taxes on each other's goods that had had the effect of erecting a trade embargo between the world's No. 1 and 2 economies, but US officials in recent weeks accused China of slow-walking on its commitments, particularly around rare earths shipments.
"We want China and the United States to continue moving forward with the agreement that was struck in Geneva," White House spokeswoman Karoline Leavitt told the Fox News programme "Sunday Morning Futures" on Sunday.
"The administration has been monitoring China's compliance with the deal, and we hope that this will move forward to have more comprehensive trade talks."
The inclusion at the London talks of Lutnick, whose agency oversees export controls for the US, is one indication of how central the issue has become for both sides. Lutnick did not attend the Geneva talks, at which the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other since Trump's inauguration.
That preliminary deal sparked a global relief rally in stock markets, and US indexes that had been in or near bear market levels have recouped the lion's share of their losses.
The S&P 500 Index, which at its lowest point in early April was down nearly eighteen per cent after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about two per cent below its record high from mid-February.
The final third of that rally followed the US-China truce struck in Geneva.
Still, that temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated, export-driven economic model.
While the UK government will provide a venue for Monday's discussions, it will not be party to them but will have separate talks later in the week with the Chinese delegation.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
32 minutes ago
- The Star
Asian stocks climb, FX steady as US-China trade talks set to continue
Stock markets in Asia climbed on Tuesday and regional currencies were little changed against a steady U.S. dollar, as investors monitored the second day of trade negotiations between the United States and China. Representatives from Beijing and Washington met in London on Monday, just days after U.S. President Donald Trump and Chinese leader Xi Jinping held their first post-inauguration call to address an escalating trade dispute. Trump said he had received "good reports" from officials engaged in the talks, which are expected to extend into Tuesday. "The response in markets today, though, looks mixed," Maybank analysts said in a research note, adding that they would continue to monitor the situation. MSCI's broadest index of Asia Pacific shares outside Japan rose as much as 0.7% to its highest level since January 21, 2022. DBS analysts said that the second day of trade talks might see the U.S. relaxing restrictions on tech exports in exchange for China resuming rare-earths mineral shipments. The tech-heavy Taiwanese index jumped 2.1% to a two-week high, with chip giant TSMC surging 4%. South Korean equities rose 0.3% and Indonesian shares gained 1.2%. Malaysian stocks added 0.1%. Analysts at United Overseas Bank noted that the country's foreign portfolio inflows in May hit their highest level since March 2016 as signs of tariff de-escalation improved risk appetite. Regional currencies were largely unchanged. The absence of concrete outcomes from Monday's discussions between the world's two largest economies kept currency markets subdued, with traders hesitant to take on big positions. The Malaysian ringgit, Singapore dollar each inched 0.1% lower, while the Taiwanese dollar and Thai baht edged 0.1% higher. The South Korean won fell 0.5%. The U.S. dollar index was up 0.2% as investors awaited U.S. inflation data which is due on Wednesday. The inflation report is among the final key data points ahead of the U.S. Federal Reserve's June 17-18 meeting, where it is widely expected to keep rates unchanged. HIGHLIGHTS: ** Taiwan May exports hit record on AI demand and ahead of U.S. tariffs ** Investors eye Latin America as they diversify away from Wall Street ** India May inflation likely cooled to 3% as food price pressure eases - Reuters


The Sun
34 minutes ago
- The Sun
Repeated shocks risk global trade
DISCUSSION around the consequences of President Donald Trump's economic policies – most notably the increased tariffs on all countries, especially China – has centred on economic costs. These costs affect both businesses and consumers, manifesting as higher prices for traded goods, a shift in production to less efficient locations and reduced consumer choices when goods are no longer produced or traded. The focus on economic costs neglects a more impactful and troubling development: a shift in global trade governance and the exchange of goods under it. The US has gone from being the establisher and leader of international trade institutions to being the single greatest threat to their continuation. Multinational enterprises that have prospered under this system face unprecedented uncertainty and increasingly stark choices between upholding the system and being undercut by competitors forced to circumvent it. Businesses engaging in international trade and investment have long relied upon rules, principles and norms established under the General Agreement of Tariffs and Trade (GATT) in 1948 and deepened under the stewardship of the World Trade Organisation (WTO) since 1995. The international system under GATT and WTO supports trade through the elimination of trade barriers including tariffs, quotas and subsidies, by establishing principles of equal treatment and by providing mechanisms to manage disputes between nations and companies. Continuing business faith in multilateral trade rules and liberalisation is increasingly at odds with the positions of nation-states. The global financial crisis in 2007 to 2008, China's rapid rise to dominant global manufacturer since joining WTO in 2001 and legitimate concerns with the distribution of trade benefits within countries have contributed to popular backlash against freer trade. The rise of powerful global corporations that pursue profits rather than sovereign interests has also played on the fears of nation-states that, through liberalisation, have ceded much regulatory autonomy. Against this backdrop is a world besieged by increasingly frequent major shocks – of human and natural origin. Businesses and nation-states are navigating trade wars, disease outbreaks, military conflicts and intensifying weather events – individually and in tandem. Discourse typically bundles these shocks together to paint an overall picture of instability, lower confidence and temporary disruption to economic activity. But to appreciate the sustained consequences for trade, the stepwise influence of each major shock deserves further examination. The first Trump administration's trade war from 2018 provided the first substantial and symbolic shift from trade liberalisation to restriction. It delivered an initial blow to the 'made in China, sold in America' model, prompting conversations in global boardrooms around the need to reduce dependence on production in China. However, investors were largely unwilling to forgo China's cost competitiveness with the re-export of goods via third countries, particularly in Southeast Asia, being the dominant response. Trade continued within the bounds of international governance. The Covid-19 pandemic from early 2020 created more substantive fractures between businesses and governments on trade governance. International institutions proved incapable of mobilising an effective and coordinated health and economic response, with business disruption amplified under diverging sovereign measures. China's draconian response delivered a goal for its reputation as a reliable production location. While economists and businesses marvelled at the adaptability of global supply chains, governments saw vulnerabilities requiring intervention on national security grounds. Russia's invasion of Ukraine in early 2022 poured salt into the open wound, sharply highlighting the divergence between corporate interests and those of nation-states. US-led sanctions on trade with Russia sought to divide markets along geopolitical lines with little regard for business impacts. The ability of businesses from Russia, China, India and elsewhere to circumvent inadequately enforced sanctions exposed the limits of international and national governance to uphold trade restrictions. Companies from America, Europe and elsewhere had to choose between supporting sanctions and sustaining profits, with many becoming circumventers. That markets did a better job of navigating sanctions and war than governments did of implementing sanctions reinforced the pandemic fracture between businesses and governments, significantly eroding trust in international trade governance. It is in this context that Trump 2.0 must be seen as an existential threat to prospects for restoring faith in the system. The US is now the primary source of economic policy uncertainty and lead antagonist undermining international institutions, imposing and threatening smaller countries with tariffs and hollowing out WTO. Businesses conditioned by pandemic-induced disruptions and ineffectual sanctions face another choice between wearing tariff costs and being undercut by less scrupulous competitors. Maintaining support for formal, rules-based and ethical international trade means contending with an increasingly formidable global network of informal actors and activities that outmatch the enforcement efforts of trade regulators. After all, border processes that have been streamlined and deregulated over decades to encourage seamless and trusted trade cannot be instantly and effectively converted to a punitive enforcement stance. And neither Trump nor the countries he threatens appear willing to plough resources into tighter trade regulation or have a vision for what enforcement looks like. Arresting the decline of trade institutions may seem insurmountable in the current geopolitical environment but the alternative is trending towards a future in which governments everywhere cede control of effective trade regulation. In such a world, the ability of international institutions and nation-states to uphold product standardisation and safety, supply chain resilience and ethical practices is compromised. Government capacity to raise revenue and manage the macroeconomy is further weakened by growing informality while businesses and consumers pay for the additional risk embodied in less-regulated trade. The world sans the US must act quickly to reinforce the international system, strengthening international institutions, including WTO. Space for greater leadership from large emerging economies must be created to forge a collective governance approach for countries across the development spectrum. Tackling systemic destruction is far greater and more economically consequential than addressing the immediate impact of Trump tariffs. A world in which trade operates outside of good governance frameworks would leave everyone poorer. Dr Stewart Nixon is the deputy director of research at the Institute for Democracy and Economic Affairs (Ideas). The views expressed in this article are solely those of the writer and do not necessarily represent the views or positions of Ideas Malaysia.


New Straits Times
an hour ago
- New Straits Times
Sarawak signs MoU with Chinese firms to explore floating solar at Bakun dam
SHANGHAI: The Sarawak government has formalised a memorandum of understanding (MoU) with two Chinese companies to jointly undertake various studies and collaborate to explore the potential development of floating solar - with a capacity not exceeding 1,000MW - on the reservoir of the Bakun dam. The MoU was formalised between the Sarawak Utility and Telecommunication Ministry, China Three Gorges International Ltd, and Shanghai Electric Power T&D Group Co Ltd at the 2025 International Solar Photovoltaic and Smart Energy Conference (SNEC PV) in Shanghai today. The signatories of the MoU were Sarawak's Permanent Secretary for the Utility and Telecommunication Ministry Datuk Jafri Lias, vice-president of China Three Gorges International Ltd Zhang Kai Hong, and Vice President of Shanghai Electric Power T&D Group Co Ltd Yang Xing Hai. Premier Tan Sri Abang Johari Openg, in his speech at the signing ceremony, said Sarawak was pleased to forge this strategic alliance with strong industry partners like CTGI and Shanghai Electric. In a speech read by Deputy Utility and Telecommunication Minister Datuk Ibrahim Baki, Abang Johari said the strategic alliance would support the state government's aim of ensuring energy security and environmental sustainability. "Sarawak currently has a generation capacity of about 5,900MW, predominantly from renewable hydropower sources. "Sarawak targets a 10GW generation capacity by 2030, and 15GW by 2035, with renewable sources making up over 60 per cent of the capacity mix. "With its vast renewable energy resources, Sarawak has the potential to become a renewable energy powerhouse in the region," Abang Johari said. He said Sarawak's progressive renewable energy policies are accelerating the state's energy transition. He said recent amendments to the Electricity Ordinance in 2023 further underscore Sarawak's commitment to decarbonisation, with enabling provisions for large-scale solar development, consumer-generated electricity, and independent power producer participation. The premier said Sarawak's growing focus on solar energy reflects the state's approach, which includes solar-hybrid rural electrification, hydrogen-integrated solar systems, and the Net Energy Metering (NEM) scheme to support solar adoption in housing developments. He said Sarawak successfully generated power from its first large-scale solar installation at the Batang Ai Dam in December 2024. He said the 50MW floating solar farm, spanning over 190ha of the Batang Ai reservoir, also marks Sarawak's first integrated hydroelectric and solar power scheme. He said this initiative would pave the way for further development of floating solar projects in Sarawak at other hydropower reservoirs through privately funded investments. The MoU signing was held in conjunction with the SNEC PV+ 18th International Photovoltaic Power Generation and Smart Energy Conference & Exhibition, which is being held from June 10 to 13, 2025, at the National Exhibition and Convention Centre in Shanghai, China. The event is known as the world's largest and most influential PV trade show, attracting more than 3,000 exhibitors from 95 countries.