
US-China trade, minerals talks in London set to extend to second day
LONDON: US-China trade talks were set to extend to a second day in London as top economic officials from the world's two largest economies sought to defuse a bitter dispute that has widened from tariffs to restrictions over rare earths, threatening a global supply chain shock and slower economic growth.
Talks at Lancaster House, an ornate UK government mansion, wrapped for the night on Monday and were set to resume at 10am BST (0900 GMT) on Tuesday, a US source familiar with the negotiations said.
Washington and Beijing are trying to revive a temporary truce struck in Geneva that had briefly lowered trade tensions and calmed markets.
Since then, the US has accused China of slow-walking its commitments, particularly around rare earths shipments.
US President Donald Trump on Monday put a positive spin on the talks, saying that they were going well and he was "only getting good reports" from his team in London.
"We're doing well with China. China's not easy," Trump said, offering no details on the substance of the discussions.
Asked about lifting export controls, Trump told reporters at the White House: "We're going to see."
White House economic adviser Kevin Hassett had said earlier on Monday that the US team wanted a handshake from China on rare earths after Trump said Chinese President Xi Jinping agreed to resume shipments in a rare call between the two leaders last week.
Hassett told CNBC in an interview that the US would expect export controls to be eased and rare earths released in volume immediately afterwards.
The London talks come at a crucial time for both economies, which are showing signs of strain from Trump's cascade of tariff orders since his return to the White House in January.
Customs data showed that China's exports to the US plunged 34.50 per cent year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the Covid-19 pandemic upended global trade.
In the US, business and household confidence has taken a pummelling, while first-quarter gross domestic product contracted due to a record surge in imports as Americans front-loaded purchases to beat anticipated price increases.
So far, the impact on inflation has been muted and the jobs market has remained fairly resilient, though economists expect cracks to become more apparent over the summer.
Attending the talks in London are US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer.
The Chinese contingent led by Vice Premier He Lifeng includes Commerce Minister Wang Wentao and the ministry's chief trade negotiator, Li Chenggang.
The inclusion of Lutnick, whose agency oversees export controls for the US, is one indication of how central rare earths have become.
Some analysts saw it as a sign that Trump is willing to put recently imposed Commerce Department export restrictions on the table.
China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors.
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.
Meanwhile, the US court fight over an effort to invalidate Trump's tariffs on goods from China and other trading partners advanced on Monday with the Trump administration filing arguments in its appeal of a US trade court's ruling that the levies exceeded Trump's legal authority.
The federal appeals court could rule at any time on the Trump administration's request to keep the tariffs in place while the appeal proceeds. It could go all the way to the Supreme Court.
POSITIVE CONCLUSION
Trump and Xi spoke by phone last week, their first direct interaction since Trump's Jan 20 inauguration.
During the 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 the British capital.
The next day, Trump said Xi had agreed to resume shipments to the US of rare earths minerals and magnets. Reuters reported that China granted temporary export licences to rare-earth suppliers of the top three US automakers.
EXPORT RESTRICTIONS
China's decision in April to suspend exports of a wide range of critical minerals and magnets upended the global supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors.
Kelly Ann Shaw, a former White House trade adviser during Trump's first term and now a trade partner at the Akin Gump law firm in Washington, said she expected China to reaffirm its commitment to lift retaliatory measures, including export restrictions, "plus some concessions on the US side, with respect to export controls measures over the past week or two."
But Shaw said she expected the US to only agree to lift some new export curbs, not longstanding ones such as for advanced artificial intelligence chips.
In May, the US ordered a halt to shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued.
The preliminary deal in Geneva 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.
But Ian Bremmer, president of the Eurasia Group, said while a temporary truce was possible, there was little prospect for the bilateral relationship to become constructive given broader decoupling trends and continued US pressure on other countries to take China out of their supply chains.
"Everyone around Trump is still hawkish and so a breakthrough US-China trade deal is unlikely, especially in the context of other deals that are further along and prioritised," he said in an analyst note.
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
Firms adopt ESG as part of long-term strategy
Despite promising examples, environmental, social and governance adoption in Vietnam remains limited. — VNA/VNS HANOI: Climate change poses challenges and opportunities for Vietnamese businesses, as global markets increasingly prioritise sustainable products and services, say economists and industry experts. The Director of Sustainability & Climate Change Advisory Services at Deloitte Vietnam, Pham Minh Huong, noted that enterprises can tap into new potential by developing environmentally-friendly products and improving energy efficiency. According to the Industry and Trade Ministry, if Vietnam raises its energy efficiency rate from the current 1.8% to 2%, it would have an impact equivalent to halving the electricity output from coal, currently the country's largest source of carbon emissions. Companies like Hoa Phat have already begun investing in green steel technologies, adopting renewable energy to reduce emissions. These efforts meet regulatory requirements and help expand market share in developed economies. Despite promising examples, environmental, social and governance (ESG) adoption in Vietnam remains limited. Le Hoang Hai, deputy head of the Public Company Supervision Department at the State Securities Commission of Vietnam (SSC), revealed that only 14% of more than 700 companies listed on the Hochiminh Stock Exchange or Hose publish standalone sustainability reports. This figure drops below 5% when limited to those who are audited. The primary barrier is the lack of a comprehensive legal framework and specific guidance for ESG standards. To address this, the SSC is collaborating with the International Finance Corp or IFC to develop a national set of ESG standards, expected by 2026. The aim is to assist small and medium-sized enterprises (SMEs), which make up 97% of Vietnam's total businesses, in aligning with international regulations. The vice-chairman and secretary-general of the Vietnam Association of Certified Public Accountants (Vacpa), Tran Khanh Lam, views ESG assurance as a business opportunity for auditors and a driver for improved corporate governance. In 2023, over 500 auditors participated in IFRS S1 and S2 training programmes co-organised by Vacpa and the Association of Chartered Certified Accountants or ACCA. However, Lam acknowledged that a shortage of experts in environmental and technological fields poses a challenge to high-quality ESG auditing. A recent report by PwC Vietnam found that only 20% of auditors currently possess basic ESG knowledge, underlining the need for long-term workforce training and resource development. International governance expert Simon C.Y. Wong warned that climate-related economic losses could reach US$38 trillion globally by 2049 without urgent action. This highlights the need for decisive corporate governance that integrates environmental and social risks. Leading Vietnamese corporations such as Vinamilk and PAN Group offer successful examples. Vinamilk has developed Global GAP-certified dairy farms and integrated ESG practices across its supply chain to reduce emissions. Meanwhile, PAN Group has applied international governance standards to improve sustainable operations. Pham has repeatedly stressed that governance is not just about compliance, but a foundation for achieving environmental and social goals. Implementing international standards like IFRS S1 and S2 enables transparency and boosts credibility in global markets. For instance, Vietnamese seafood exporters have used these frameworks to meet rigorous ESG requirements in the European Union and US markets, where sustainability has become a crucial evaluation criterion. Le Hoang Hai reaffirmed that Vietnam's regulatory framework is evolving. Corporate governance obligations are already set out in the 2019 Securities Law. The SSC has intensified its monitoring of ESG disclosures and imposed strict penalties on non-compliant firms. In 2023, 15 listed companies were fined for delayed or opaque sustainability reporting – a sign of growing enforcement. These regulatory efforts help enterprises adapt to climate risks and prepare them to capture opportunities in a greener global economy. — Viet Nam News/ANN


The Star
37 minutes ago
- The Star
U.S. stocks gain on optimism over China-U.S. trade talks
NEW YORK, June 10 (Xinhua) -- U.S. stocks closed higher on Tuesday as investors monitored ongoing trade discussions between China and the United States, fueling hopes for progress in easing global economic tensions. The Dow Jones Industrial Average rose by 105.11 points, or 0.25 percent, to close at 42,866.87. The S&P 500 gained 32.93 points, or 0.55 percent, to settle at 6,038.81, while the Nasdaq Composite Index climbed 123.75 points, or 0.63 percent, ending the day at 19,714.99. Gains were broad-based, with 10 of the 11 primary S&P 500 sectors finishing in green. Energy and consumer discretionary stocks led the advance, rising 1.77 percent and 1.19 percent, respectively. Industrials was the only sector to decline, slipping 0.44 percent. Trade negotiations between Chinese and U.S. officials in London entered their second day on Tuesday. U.S. Commerce Secretary Howard Lutnick expressed the optimism that the talks could wrap up by Tuesday night, though he acknowledged they may extend into Wednesday if necessary. Markets have rallied through the early part of June, buoyed by investor optimism surrounding trade diplomacy and ongoing signs of economic strength. "Technically, shares have been on a nice run eclipsing key levels to get back on track. Longer-term they started the week right above its downtrend line going back to its annual highs," said Jay Woods, chief global strategist of Freedom Capital Markets. Tesla shares surged 5.67 percent on Tuesday, extending a rebound that began earlier this week following a steep sell-off tied to the high-profile dispute between Tesla CEO Elon Musk and U.S. President Donald Trump. The electric vehicle maker's stock has now recovered a significant portion of last week's losses. Other mega-cap technology stocks also ended the day mostly higher. Alphabet and Meta Platforms each gained more than 1 percent, while Apple rose 0.61 percent, recovering modestly after a dip on Monday triggered by lackluster reactions to its Worldwide Developers Conference. Despite the market's recent strength, the World Bank issued a cautionary note on the U.S. economic outlook, becoming the latest global institution to highlight risks posed by trade uncertainty. In its updated forecast, the bank projected U.S. economic growth of just 1.4 percent in 2025, down sharply from the 2.8 percent rate recorded in 2024. Some strategists are also cautious about the longer-term picture. Analysts at HSBC noted that while global equities may continue climbing over the next three months, the outlook beyond that appears more uncertain. "Medium term (6 months+) the risk/reward is looking more unbalanced, with markets trading near their highs, recession fears appear largely priced out and the structural pillars supporting U.S. exceptionalism at risk of being undermined," strategist Alastair Pinder wrote in a note Tuesday.


The Star
2 hours ago
- The Star
China bans bank from luring depositors with gifts
The guidance came in the wake of a promotion by Ping An Bank Co, which has been offering Labubu collectibles in multiple cities for new depositors who can park in 50,000 yuan for three months. — Bloomberg BEIJING: A Chinese lender's stunt to woo depositors with gifts including the wildly popular Labubu dolls has been barred by financial regulators, underscoring the increasingly fraught battle among banks for customers as interest rates and profit margins fall. The Zhejiang branch of the national financial regulatory administration has asked local banks to refrain from giving non-compliant perks to attract deposits, according to sources. The guidance came in the wake of a promotion by Ping An Bank Co, which has been offering Labubu collectibles – blind box toys – in multiple cities for new depositors who can park in 50,000 yuan for three months. Such a practice, which often involves offering free items like rice or small home appliances, as well as e-gifts such as memberships at Internet platforms, was seen as driving up costs at banks and hurting their margins, said the sources. While Ping An Bank's marketing campaign went viral on Chinese social media platform Xiaohongshu and sparked strong interest from potential savers, it also drew criticism from state media which said it was 'not a long-term solution.' Chinese lenders are walking a tightrope as they balance between deposit taking and protecting margins. — Bloomberg