LONDON: The United States and China continued its commercial talks for a second day in London on Tuesday, the two parties sending positive signals that a resolution to the current trade war could be at hand. US trade secretary Howard Lutnick described talks as “good” and expected them to last all day.
The global stock markets have remained moderate, investors awaiting developments in negotiations, which aim to consolidate a fragile truce. Kathleen Brooks, director of research at XTB, noted that the absence of positive news had exerted pressure on shares and the dollar. However, the high American economic adviser Kevin Hassett expressed his confidence, saying that he expected “a large and strong handshake” after the talks, referring to potential concessions on both sides.
Discussions focus on Chinese export of rare land minerals, essential for technology such as smartphones and electric vehicle batteries. Geneva talks last month brought a temporary reduction in prices, but the slow release of supplies and other problems by Beijing continued to hinder progress.
Although optimism remains, analysts have warned that a complete relaxation of tensions can be unlikely. Despite progress, experts like Thomas Mathews from Capital Economics remain cautious, which suggests that the United States may not completely back up on prices, which could limit any gathering on the markets.
Chinese President Xi Jinping also asked for international support, meeting the new president of South Korea Lee Jae-Myung to discuss the stability of free trade and the world supply chain.
The ongoing negotiations are considered crucial for the two nations, with the American delegation led by the Treasury Secretary Scott Bessent, while the Chinese team is led by the Deputy Prime Minister He Lifeng.
