Last month, on the 10th and 11th, high-level tariff negotiations between the U.S. and China took place in Geneva, Switzerland. The U.S. was represented by Treasury Secretary Scott Besant (left) and China by Vice Premier He Lifeng, who engaged in marathon talks. / Yonhap News
He Lifeng (70), the Chinese Vice Premier leading the tariff negotiations with the U.S., will visit the U.K. starting on the 8th to meet with the U.S. trade delegation. This will be the first meeting between the two delegations in about a month. After the first call since the tariff war between U.S. President Donald Trump and Chinese President Xi Jinping on the 5th, there is much interest in how the discussions on implementing a ‘tariff truce’ will unfold.
China’s Ministry of Foreign Affairs announced on the 7th that Vice Premier He Lifeng will visit the U.K. from the 8th to the 13th at the invitation of the British government. During this period, he will lead the first meeting of the U.S.-China economic and trade negotiation mechanism. Previously, on the 6th, President Donald Trump revealed on social media platform Truth Social that Treasury Secretary Scott Besant, Commerce Secretary Howard Lutnick, and USTR Representative Jamison Greer would discuss trade agreements with the Chinese delegation in London.
On the 10th and 11th of the previous month, the two delegations held high-level tariff talks in Geneva, agreeing to reduce mutual tariff rates by 115 percentage points over 90 days. Nevertheless, tensions flared up again within a month. Trump accused China of maintaining rare earth export restrictions despite promising to lift non-tariff retaliatory measures, claiming that “China has completely violated the Geneva agreement.” In response, China objected to U.S. actions such as AI semiconductor export controls and visa bans for Chinese students, which were seen as targeting China. However, tensions slightly eased after the two leaders had a 90-minute phone call on the 5th to address trade conflicts. According to Xinhua News Agency, Xi stated in the call that “dialogue and cooperation are the only correct choices,” while Trump mentioned on Truth Social that a “very positive conclusion was reached for both countries.”
China appears to be partially acceding to U.S. demands, such as resuming rare earth exports. On the 7th, China’s Ministry of Commerce noted, “We are observing an increase in international demand for Chinese rare earths due to the development of industries such as robotics and new energy vehicles.” It added, “As a responsible major power, China has conducted a review of export license applications for rare earth-related items in accordance with the law, approving a certain quantity while fully considering reasonable demands and concerns of each country’s private sector.” Furthermore, it indicated intentions to enhance communication and dialogue on export controls with relevant countries and to promote trade aligned with regulations. Additionally, Chinese airlines have resumed the acquisition of U.S. Boeing aircraft, which had been halted due to the U.S.-China tariff war, within just two months. According to Chinese economic media Diyi Caijing on the 8th, a new Boeing 737 Max aircraft departed from Boeing’s Seattle headquarters to China early the day before.