Progress and Challenges of Trade Talks Between the USA and China
The ongoing trade talks between the USA and China are the focus of international markets and investors. These discussions aim to ease the persistent trade conflict between the two largest economies in the world. Here are some of the key developments and challenges:
Background of the Trade Conflict
The trade conflict between the USA and China has developed over several years and is characterized by high tariffs and reciprocal economic sanctions. The conflict has escalated in recent months, leading to a decline in trade between the two countries. In May 2025, exports and imports between the USA and China fell sharply, highlighting the economic impacts of the conflict.
Recent Developments in the Talks
In May 2025, the USA and China met in Geneva to reach an agreement aimed at temporarily reducing tariffs. China has agreed to suspend 24 percentage points of the additional tariffs on US products for 90 days and to suspend or lift non-tariff countermeasures.
Current Talks in London
On June 9, 2025, new talks commenced in London, as part of the mechanism to continue economic discussions. Senior representatives, including the Chinese Vice Premier and US officials, are leading the talks.
Challenges and Expectations
These talks are being closely monitored by the markets as they could have significant impacts on the global economy. One central issue is the supply of rare earths, which are critical for the production of technology goods. China has recently approved some export requests, but without providing details on the countries or industries affected.
Outlook
The continuation of the talks is crucial for the stability of the global economy. Investors are waiting for clear signals that could define the future of trade relations.