High-level representatives from the United States and China are set to meet in London in an attempt to prevent a looming trade war that threatens the global economy. The discussions, involving senior officials such as US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, will engage with a Chinese delegation led by Vice Premier He Lifeng. This meeting comes as part of ongoing efforts to stabilize relations between the world's two largest economies, following recent negotiations in Geneva that temporarily halted further tariff escalations.
The Geneva talks resulted in a 90-day suspension of the extensive tariffs imposed by both nations. Despite this temporary truce, tensions have continued, with both sides exchanging criticisms. President Donald Trump, after a recent phone call with Chinese President Xi Jinping, expressed optimism about the upcoming London talks, emphasizing the importance of continuing progress from the earlier Geneva agreement.
The United Kingdom, though not directly involved in the negotiations, has expressed support for the talks, acknowledging that a trade war serves no one's interests. The London meeting follows the first publicly acknowledged phone call between President Trump and President Xi since Trump assumed office again in January, where the conversation reportedly ended on a positive note.
Customs data has highlighted the trade conflict's impact, showing a significant drop in Chinese exports to the US by 34.5 percent in May, marking the steepest decline since the COVID-19 pandemic began. Despite these challenges, stock markets in Asia, including China, experienced a rise in anticipation of the negotiations, indicating cautious optimism about the potential for a resolution.
