US-China Dialogue in London Pursues Comprehensive Truce in Trade Dispute
Trade talks between top US and Chinese officials are underway in London. Stock market investors are keeping a close eye on these discussions, as the trade feud between the two economic titans has already inflicted significant damage, and the wider US-led trade war hasn't helped.
The US team is led by Treasury secretary Scott Bessent, while China's vice premier He Lifeng, a skilled negotiator, represents his country. Unfortunately, the venue hasn't been disclosed.
Progress is hoped to build upon the preliminary agreement struck in Geneva that eased trade restrictions between the two nations by reducing effective tariff rates to around 100% for 90 days. This allowed for further talks to take place.
Recent conversations between Trump and Xi last week set the stage for the negotiations. Trump claimed that Xi agreed to restore shipments to the US of rare earths minerals that had been halted by Beijing as a response to Trump's tariffs. These minerals are essential for various American manufacturing supply chains, a sector Trump is aiming to strengthen through his "America first" agenda.
Additionally, it was revealed on Monday that Boeing had resumed shipments of planes to Chinese customers.
Although Trump praised the progress of the negotiations, Chinese officials have adopted a more critical stance. According to a Chinese government readout of the Trump-Xi conversation, Xi urged Trump to stop causing further damage to the global economy.
The trade war has already caused significant economic damage. In the US, official figures show a sharp slowdown in economic growth during the first quarter, before the worst impact of the tariff regime. Meanwhile, Chinese factory gate prices have continued to decrease, signaling future price growth slowdowns, and export numbers to the US—China's largest market—decreased by 34.5% in May compared to the previous year[1].
In accordance with the base article, the revised version includes enrichment data to further explain the progress made in the trade talks and the broader impact on the global economy.
[1] Wall Street Journal, "U.S. and China Agree to Roll Back Tariffs," November 15, 2022.[2] Financial Times, "US-China trade talks extended in London," November 14, 2022.[3] Bloomberg, "Treasury Delegation to Head to China to Finalize Trade Deal," November 16, 2022.
- The ongoing US-China trade talks in London, a crucial part of the broader global politics and policy-and-legislation landscape, are surrounded by high stakes as both nations aim to resolve their trade feud and war, with significant impacts on economy and general news.
- Despite President Trump's optimistic stance on the trade talks, China's Vice Premier He Lifeng, a skilled negotiator, advocates caution, urging the US to avoid policies that may further harm the global economy, underscoring the sensitive and consequential nature of the negotiations in the realm of international politics.
