Crisis talks between the USA and China: Does the Head of Hedicones come back?

China und die USA setzen Handelsgespräche fort, um Zollstreitigkeiten zu klären. Treffen in London am Montag.
China and the United States continue trade talks to clarify customs disputes. Meeting in London on Monday. (Symbolbild/DNAT)

Crisis talks between the USA and China: Does the Head of Hedicones come back?

London, Vereinigtes Königreich - On June 7, 2025, China confirmed the upcoming trade talks with the USA, which will take place in London on Monday. These discussions are the first visit to the Chinese-American consultation mechanism for economy and trade and are intended to clarify the subtleties of a trade agreement concluded in May. US President Donald Trump and Chinese President Xi Jinping had already made a phone call on Thursday to intensify the dialogue.

On the United States, Finance Minister Scott Bessent, Minister of Commerce Howard Lutnick and US trade officer Jamieson Greer will take part in the talks. Trump said that China would resume the deliveries of rare earths and magnets to the USA as part of the negotiations and described the negotiations as far advanced. Nevertheless, his customs policy has led to considerable uncertainties in world trade in the past.

Current foci

The trade dispute between the two nations, which has been going on since the beginning of 2018, is characterized by various issues. These include the US restrictions for the sale of technology products to China and China's export controls on rare earths. China's Ministry of Commerce justifies these export controls with both civil and military purposes and announced that export licenses are granted. These measures are in the context of a large number of allegations and counterclaims that have raised both sides in the past few weeks.

A few days ago, the Chinese government rejected allegations from Washington that it had violated the customs agreements. China's Ministry of Commerce described these accusations as "false accusations" and accused the United States to impose discriminatory measures. Concrete US measures include restrictions on the sale of AI chips and chip design software to China as well as cancellations of Visa for Chinese students.

economic effects and forecasts

The previous trade measures and tariffs have significant effects on the economy of both countries, but also on global trade. Reports show that US exports to China fell by 34 % in 2018, which caused the United States' trade balance deficit to $ 621 billion. Trump's decision to increase tariffs from China from 20 % to 34 % in April 2025 also caused worrying forecasts of US economists that fear negative effects on the US economy.

In order to reduce the current tensions, the United States and China made an agreement in mid -May to suspend some tariffs for 90 days. Chinese products that were previously loaded with tariffs of up to 145 % should now be reduced to 30 %, while the US products have been reduced from 125 % to 10 %. Despite these progress, the trade conflict remains tense, and the bilateral discussions in London could be decisive for how the relationship between the two largest economies in the world will develop.

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OrtLondon, Vereinigtes Königreich
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