Description: Chinese Premier He Lifeng and the Chinese trade delegation met with US Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer at an undisclosed location in London as the second round of trade negotiations commenced. The representatives are meeting following an hourlong conversation between their leaders last week and are looking to surpass the bilateral trade obstacles and ease tariffs which have had an impact on the global economy. China and the US recently blamed each other of violating the predetermined trade conditions agreed upon in their first meeting in Geneva on 12 May which subsequently led to the US revoking visas to Chinese students and blocking China from accessing high – tech microchips and other components integral for developing technologies. China in return imposed a blocade on its rare earth minerals capacities and demanded companies to obtain state commissioned licenses in order to import the materials. The second round of talks was reported to last for two days as both countries are expected to reach some form of a trade compromise.
Impact: Expectedly, the second round of talks continues to be scarce on details as both camps are coming down from severely spiraled trade tensions. Public information indicates that both countries are invested in diplomatically resolving the trade differences as it was evident from the economic codependence between the two largest global economies. The second day of trade talks would most probably result in extensions of the tariff ceasefire as government officials on both sides hammer out the foundations of what would be a potential trade deal between the two countries. Investors remained skeptical as the unpredictability of the US – China trade relations shattered traditional trading and investment values. China comes into the negotiations on the back of a legally contested tariff policies, as Trump is facing domestic pressure for unilaterally overstepping the jurisdictions of the office of the President. The US’ growing technological sector, especially AI capacities, are largely dependent on untethered access towards critical rare earth elements which China has monopolized. The second round of talks would eventually set the baseline for a short to mid – term conclusion of a bilateral trade deal which would effectively resuscitate the global economy and establish unconventional trade relations going forward.