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Straits Times
6 hours ago
- Business
- Straits Times
Lutnick says US-China trade talks going well on second day
U.S. Treasury Secretary Scott Bessent and Chinese vice premier He Lifeng pose for a photo with U.S. Trade Representative Jamieson Greer, U.S. Secretary of Commerce Howard Lutnick, Chinese Commerce Minister Wang Wentao, and China's International Trade Representative and Vice Minister of Commerce Li Chenggang, in London, Britain June 9, 2025. United States Treasury/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY Media members stand outside the Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. REUTERS/Toby Melville Officials arrive at Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. REUTERS/Toby Melville U.S. Secretary of Commerce Howard Lutnick waves as he arrives at Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. REUTERS/Toby Melville Lutnick says US-China trade talks going well on second day LONDON - U.S. Commerce Secretary Howard Lutnick said on Tuesday trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. U.S. and Chinese officials are trying to get back on track after Washington accused Beijing of blocking exports of rare earth minerals that are critical to its economy, straining ties after they struck a preliminary deal in Geneva last month to step back from a full-blown trade embargo. White House economic adviser Kevin Hassett said on Monday that the U.S. was ready to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths and magnets. "(Talks went on) all day yesterday, and I expect (them) all day today," Lutnick told reporters. "They're going well, and we're spending lots of time together." Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. But markets have made up much of the losses they endured after Trump unveiled his sweeping "Liberation Day" tariffs in April, aided by the reset in Geneva between the world's two biggest economies. The second round of U.S.-China talks, which followed a rare phone call between Trump and Chinese President Xi Jinping last week, comes at a crucial time for both economies. Customs data published on Monday showed that China's exports to the U.S. plunged 34.5% in May, the sharpest drop since the outbreak of the COVID pandemic. While the impact on U.S. inflation and its jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure. DISCUSSING DISAGREEMENTS The talks have been led by U.S. Treasury Secretary Scott Bessent, Lutnick and U.S. Trade Representative Jamieson Greer, with the Chinese contingent helmed by Vice Premier He Lifeng. The talks ran for almost seven hours on Monday and resumed just before 1000 GMT on Tuesday, with both sides expected to issue updates later in the day. The inclusion of Lutnick, whose agency oversees export controls for the U.S., is one indication of how central rare earths have become. He did not attend the Geneva talks, when the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains and sparked alarm in boardrooms and factory floors around the world. 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 U.S. side, with respect to export control measures over the past week or two". But Shaw said she expected the U.S. to only agree to lift some new export curbs, not longstanding ones such as for advanced artificial intelligence chips. In May, the U.S. ordered a halt to shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
6 hours ago
- Business
- Straits Times
US-China trade talks on export controls to resume for a second day
U.S. Treasury Secretary Scott Bessent and Chinese vice premier He Lifeng pose for a photo with U.S. Trade Representative Jamieson Greer, U.S. Secretary of Commerce Howard Lutnick, Chinese Commerce Minister Wang Wentao, and China's International Trade Representative and Vice Minister of Commerce Li Chenggang, in London, Britain June 9, 2025. United States Treasury/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY Media members stand outside the Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. REUTERS/Toby Melville Officials arrive at Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. REUTERS/Toby Melville U.S. Secretary of Commerce Howard Lutnick waves as he arrives at Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. REUTERS/Toby Melville LONDON - Top U.S. and Chinese officials will resume trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls for rare earths and other goods that have threatened a fresh rupture between the two superpowers. Investors are hoping for an improvement in ties after the relief sparked by a preliminary deal agreed in Geneva last month gave way to fresh doubts after Washington accused Beijing of blocking exports that are critical to sectors including autos, aerospace, semiconductors and defence. White House economic adviser Kevin Hassett said on Monday that the U.S. was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths. U.S. President Donald Trump said the talks were going well: "We're doing well with China. China's not easy." Trump's often erratic policymaking on tariffs has roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. The second round of U.S.-China talks, which followed a rare phone call between Trump and Chinese President Xi Jinping last week, comes at a crucial time for both economies. Customs data published on Monday showed that China's exports to the U.S. plunged 34.5% in May, the sharpest drop since the outbreak of the COVID-19 pandemic. While the impact on U.S. inflation and the jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure. DISCUSSING DISAGREEMENTS The two sides, led at the talks by U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, with the Chinese contingent helmed by Vice Premier He Lifeng, are meeting at the ornate Lancaster House in the British capital. The talks ran for almost seven hours on Monday and are set to resume after 0900 GMT on Tuesday, with both sides expected to issue updates later in the day. The inclusion of Lutnick, whose agency oversees export controls for the U.S., is one indication of how central rare earths have become. He did not attend the Geneva talks, when the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains and sparked alarm in boardrooms and factory floors around the world. 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 U.S. side, with respect to export controls measures over the past week or two". But Shaw said she expected the U.S. to only agree to lift some new export curbs, not longstanding ones such as for advanced artificial intelligence chips. In May, the U.S. ordered a halt to shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
a day ago
- Business
- Straits Times
US and Chinese officials meet in London for pivotal trade talks
Officials arrive at the entrance to Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville Police officers stand on duty at the entrance of Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville Officials arrive at the entrance to Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville LONDON - Top U.S. and Chinese officials were meeting in London on Monday to try to defuse a high-stakes trade dispute that has widened beyond tit-for-tat tariffs to restrictions over rare earths, threatening to cripple supply chains and slow global growth. Officials from the two superpowers were meeting at the ornate Lancaster House to 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. Since then the U.S. has accused China of slow-walking on its commitments, particularly around rare earths shipments. U.S. economic adviser Kevin Hassett said on Monday that the U.S. team wanted a handshake from China on rare earths after Presidents Donald Trump and Xi Jinping spoke last week. "The purpose of the meeting today is to make sure that they're serious, but to literally get handshakes," Hassett, director of the National Economic Council, told CNBC in an interview. He said the expectation was that immediately after the handshake, export controls would be eased and rare earths released in volume. The talks, which could run into Tuesday, come at a crucial time for both economies, with investors looking for relief from Trump's cascade of tariff orders since his return to the White House in January. China's export growth slowed to a three-month low in May while its factory-gate deflation deepened to its worst level in two years. In the U.S., the trade war has put a huge dent in business and household confidence, and first-quarter gross domestic product contracted due to a record surge in imports as Americans front loaded purchases to beat anticipated price increases. But for now, 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 will be U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, and a Chinese contingent helmed by Vice Premier He Lifeng. The inclusion of Lutnick, whose agency oversees export controls for the U.S., is one indication of how central rare earths have become. 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. POSITIVE CONCLUSION The second round of meetings comes four days after Trump and Xi spoke by phone, their first direct interaction since Trump's January 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 U.S. of rare earths minerals and magnets and Reuters reported on Friday that China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers. 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. White House spokeswoman Karoline Leavitt told the Fox News program "Sunday Morning Futures" that the U.S. wanted the two sides to build on the progress made in Geneva in the hope they could move towards more comprehensive trade talks. The preliminary deal in Geneva sparked a global relief rally in stock markets, and U.S. 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 18% after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2% below its record high from mid-February. The final third of that rally followed the U.S.-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 U.S. 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 and will have separate talks later in the week with the Chinese delegation. The dollar slipped against all major currencies on Monday as investors waited for news, while oil prices were little changed. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
a day ago
- Business
- Straits Times
US and Chinese officials to meet in London for pivotal trade talks
Officials arrive at the entrance to Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville Police officers stand on duty at the entrance of Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville Officials arrive at the entrance to Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville LONDON - Top U.S. and Chinese officials were due to meet in London on Monday for talks aimed at defusing the high-stakes trade dispute that has widened in recent weeks beyond tit-for-tat tariffs to export controls over goods critical to global supply chains. Officials from the two superpowers were due to meet at the ornate Lancaster House to 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. The talks, which were due to start around 1130 GMT on Monday, come at a crucial time for both economies, with investors looking for some relief from U.S. 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 U.S. 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 U.S. delegation led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, and a Chinese contingent helmed by Vice Premier He Lifeng. In Geneva the two sides 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 U.S. officials in recent weeks accused China of slow-walking on its commitments, particularly around rare earths shipments. The inclusion of Lutnick, whose agency oversees export controls for the U.S., is one indication of how central rare earths has become. He 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. POSITIVE CONCLUSION 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 January 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 U.S. 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. "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 program "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 preliminary deal in Geneva sparked a global relief rally in stock markets, and U.S. 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 18% after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2% below its record high from mid-February. The final third of that rally followed the U.S.-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 U.S. 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. The dollar slipped against all major currencies on Monday as investors waited for news, while oil prices were little changed. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
4 days ago
- Business
- The Star
UK to end ban on retail investors buying crypto exchange-traded notes
FILE PHOTO: Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo LONDON (Reuters) -Britain's financial regulator is to remove a ban on consumers buying crypto exchange-traded notes (ETNs), ditching its previous position of wanting to keep them out of the hands of retail investors. The Financial Conduct Authority said on Friday that allowing retail investors to buy ETNs would support growth and competitiveness, in the latest sign that the UK is shifting its approach to crypto as the government seeks to grow the economy and support a digital assets industry. Last year the FCA had approved the launch of crypto ETNs for professional traders but banned retail investors from access, calling the products "ill-suited" because of "the harm they pose". "We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money," David Geale, executive director of payments and digital assets at the FCA, said in a statement on Friday. The proposal will now go out for consultation. Britain in April published draft laws for bringing cryptocurrencies under compulsory regulation for the first time, aligning it with the United States' approach, rather than the European Union, which has built rules tailored to the industry. To be sold to individual consumers, the ETNs will need to be traded on an FCA-approved investment exchange, the regulator said. A ban on retail investors trading cryptoasset derivatives would remain, the watchdog added. (Reporting by Tommy Reggiori Wilkes. Editing by Jane Merriman)
