Partial solutions are expected on some issues, such as rare earth minerals

                                                          Talks between China and the US revive hopes                                                                                                              

talks between China and the US revive hopes for de-escalation, but face a complex reality

Senior trade officials in the Trump administration are meeting with their Chinese counterparts in London on Monday in an attempt to contain the ongoing trade dispute between the world's two largest economies.

The US side is represented by Treasury Secretary Scott Bessant, Secretary of Commerce Howard Lutnick, and Trade Representative Jamison Greer. The Chinese Foreign Ministry announced on Saturday that Chinese Vice Premier He Lifeng, who is leading Beijing's trade negotiations, will be in the UK from June 8 to 13, and that a meeting is scheduled as part of the "China-US Economic and Trade Consultation" mechanism.

This meeting comes after Trump announced last week that he had a lengthy phone call with his Chinese counterpart, Xi Jinping, in a move aimed at avoiding a full-blown trade war. Diplomatic efforts between the two sides escalated following weeks of tension and uncertainty, after Trump announced in April the imposition of comprehensive tariffs on China and other trading partners.

Developments in the Trade Conflict

Beijing responded with counter-tariffs, sparking a tit-for-tat escalation of tariffs. The two sides reached an interim agreement during a meeting in Geneva in May to reduce tariffs for 90 days to allow for dialogue. Under the agreement, the United States reduced tariffs on Chinese imports from 145% to 30%, while China reduced its tariffs on American imports from 125% to 10%.

Since then, the two sides have traded accusations of violating the Geneva agreement. Washington accused Beijing of delaying the issuance of licenses for the export of vital minerals to the United States, while China criticized Washington's imposition of new restrictions on Chinese student visas and additional restrictions on microchip exports.

In this context, White House spokeswoman Caroline Leavitt said on Sunday that the talks in London will focus on implementing the Geneva agreement, noting that both countries have shared strategic interests in each other's markets.

No Quick Solutions

Despite the importance of dialogue, analysts do not expect a major breakthrough in today's negotiations, especially in light of the ongoing dispute over sectoral tariffs affecting strategic industries such as technology, critical minerals, manufacturing, and agriculture. "The United States and China are currently locked in an existential conflict that cannot be described otherwise," said Rebecca Harding, executive director of the Center for Economic Security, in a report published by CNBC.

She added: "It's not just about trade, but also about the flow of data, information, artificial intelligence, technology, and defense. China is currently accelerating its munitions production. This is a struggle over how the two economies will survive and compete in a digital world where the concepts of sovereignty and the nation state are changing." She continued: "What we are seeing now is only the beginning of the battle of the 21st century."

On a more optimistic note, Chi-Wei Chang, President and Chief Economist at Pinpoint Asset Management, expressed his satisfaction that the meeting took place at all, but downplayed expectations for its outcome. Chang said, "I don't have high expectations for these negotiations... I doubt we can reach a quick agreement."

He added, "We may see partial solutions to some issues, such as rare earth minerals, as China has already announced its intention to grant licenses to foreign companies to import them. These are potential temporary solutions, but I don't think we will emerge from these talks in the UK with a comprehensive solution."