Economic and Trade Consultation Launches in London

I. The Talks Have Drawn High Global Market Attention

Foreign media reports indicate that the upcoming China-U.S. economic and trade consultations in London will focus on core issues such as tariffs, technology, and rare earths, aiming to resolve trade disputes between the world’s two largest economies. These talks have garnered significant global market attention.

According to Reuters, the consultations come amid ongoing U.S.-China trade tensions that have persisted for weeks. In Geneva on May 12, China and the U.S. reached a high-level economic and trade agreement to significantly reduce bilateral tariffs simultaneously, which had previously driven a strong rebound in global stock markets. However, the interim deal struck in Geneva did not address deeper structural issues in bilateral economic and trade relations.

Following the Geneva talks, the U.S. further tightened export controls on AI and advanced chips to China. In response, China’s Ministry of Commerce issued a solemn representation, criticizing the U.S. for "depriving other countries of the right to develop advanced computing chips and AI and other high-tech industries." Meanwhile, China’s restrictions on rare earth exports have raised concerns in the U.S. about potential impacts on its domestic industries.

Since the Geneva talks, China has earnestly implemented the agreement, while the U.S. has imposed additional restrictive measures targeting Chinese chip products. These recent consultations were directly facilitated by the phone call between Chinese and U.S. leaders, signaling both sides’ desire to resolve obstacles in their relationship through sustained dialogue and in-depth consultation. Regarding the U.S.’s extensive hype over China’s rare earth export controls while remaining silent on its own extreme suppression measures, China maintains that economic and trade negotiations must adhere to equality, respect each other’s concerns, and only then can a win-win outcome be achieved.

II. For the UK: A "Diplomatic Victory"

According to Sky News, the Trump administration had approached the British government to inquire if it would host the second round of China-U.S. trade negotiations.

Securing the hosting rights is seen as a beneficial "diplomatic victory" for the UK, potentially bringing tangible benefits. The UK is committed to reaching a bilateral trade agreement with the U.S. to eliminate or significantly reduce tariffs. Hosting these talks could help advance relevant negotiation processes.

A British government source noted that beyond geographical convenience, the UK is currently in a geographically strategic position to act as a bridge and coordinator. With Sino-British relations "restarting," while capitals like Brussels or other EU capitals lack similar conditions and atmospheres.

On June 8 local time, He Lifeng, co-chair of the China-UK Economic and Financial Dialogue and Vice Premier of China, met with Reeves, co-chair of the dialogue and UK Chancellor of the Exchequer, in London during his visit. They exchanged in-depth views on China-UK economic and financial cooperation and issues of mutual concern.

He Lifeng stated that China and the UK should work together to implement the important consensus reached by President Xi Jinping and Prime Minister Starmer, ensure the effective implementation of outcomes from the China-UK Economic and Financial Dialogue, deepen exchanges and cooperation across economic and financial fields, promote mutual benefit and win-win results, and maintain the sustained, healthy, and stable development of bilateral economic relations.

Reeves said the UK attaches great importance to cooperation with China and is willing to strengthen communication with China to implement the outcomes of the China-UK Economic and Financial Dialogue, injecting new momentum into bilateral economic cooperation.

At a routine press conference of the Chinese Foreign Ministry on June 9, when asked by reporters about the meeting between He Lifeng and U.S. officials in London, and what specific information China could provide, as well as the key topics and expectations for the meeting, Foreign Ministry spokesperson Lin Jian stated that China has already released information about the first meeting of the China-U.S. economic and trade consultation mechanism. For details of the consultation, please stay tuned.

III. Global Attention: Outcomes Awaited

Stakeholders in both countries and the international community are highly focused on these talks, recognizing that China-U.S. economic and trade relations are of great significance not only to the two nations but also to the stability and development of the global economy. All parties hope that this round of talks will build on the Geneva agreement, further properly address differences, strengthen cooperation, and promote the healthy development of bilateral economic and trade relations.

As two major countries at different stages of development and with distinct economic systems, it is normal for China and the U.S. to encounter differences and frictions in economic and trade cooperation. The establishment of the China-U.S. economic and trade consultation mechanism has laid the groundwork and created conditions for bridging differences and deepening cooperation in the economic and trade sphere, setting a pragmatic tone of candid dialogue and equal consultation for these talks.

In summary, the London talks represent a critical juncture in China-U.S. strategic competition. Both sides have room for compromise but also face deep-rooted contradictions. The final outcome will influence the global economic and trade landscape for years to come.