US, China trade chiefs meet amid rising trade tensions
What's the story
Top trade negotiators from the United States and China will meet in London today to discuss the ongoing trade tensions.
The talks will focus on China's dominance in rare-earth minerals.
The meeting comes after both countries accused each other of violating a Geneva agreement in May, aimed at de-escalating their trade war.
Rising tensions
China approves applications for rare-earth exports
The trade tensions have worsened since President Donald Trump's return to the White House.
On Saturday, China approved some applications for rare-earth exports but did not disclose which countries or industries would benefit.
This decision came after Trump said Chinese President Xi Jinping had agreed to resume the flow of these vital materials.
Economic significance
'We want the rare earths...to flow just as before'
Kevin Hassett, head of the National Economic Council, stressed the importance of these materials on CBS's Face the Nation.
He said, "We want the rare earths, the magnets that are crucial for cell phones and everything else to flow just as they did before."
The trade tensions have intensified this year with tariffs exceeding 100% before a temporary pause.
Tariff disputes
Geneva deal aimed at broader de-escalation
The Geneva deal aimed at broader de-escalation, but talks stalled amid mutual accusations.
The US has raised concerns over reduced shipments of rare-earth magnets vital for electric vehicles (EVs) and defense systems.
On the other hand, China has objected to tighter US restrictions on artificial intelligence chips from Huawei and other advanced technologies.
Upcoming discussions
What to expect from the talks?
In London, US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer will meet a Chinese delegation led by Vice Premier He Lifeng.
Trump remains optimistic about the outcome of these talks, saying they should go "very well."
A recent call between Trump and Xi raised hopes for lower duties between the trading partners but left investors cautious.
Diplomatic efforts
China's approval of rare earth export applications
China's recent approval of some rare earth export applications aims to ease tensions before today's negotiations.
The Chinese commerce ministry confirmed these approvals without detailing specific countries or industries involved but acknowledged growing demand in robotics and EVs.
The ministry plans to expedite approvals for qualified exporters to Europe while granting temporary export licenses to suppliers of top US automakers.