Dear Focus Reader,

This week, top U.S. and Chinese officials convened in London for the latest round of trade talks aimed at dialing down tensions between the world's two largest economies. The high-stakes negotiations, held at Lancaster House, a stately government venue, come just days after Presidents Donald Trump and Xi Jinping spoke by phone for 90 minutes, a call Trump later described as having a "very positive conclusion."

Led by U.S. Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer, the American delegation met with Chinese Vice Premier He Lifeng, Beijing's top economic envoy. The two sides have reportedly agreed to a loose "framework" for future cooperation, though specific terms have not been disclosed. Lutnick told reporters that the parties had "pounded through" the most difficult issues and were working to implement the so-called "Geneva consensus," a 90-day tariff pause struck last month.

Among the most pressing topics were China's restrictions on exports of rare earth minerals, which are vital for electronics and defense systems. Beijing, citing domestic needs, has sharply cut back these exports since 2024, leading to a more than 20% year-on-year decline. However, Trump claimed last week that Xi agreed to resume the flow of these critical materials to the U.S., suggesting a possible breakthrough.

Still, tensions persist. U.S. export controls on semiconductor technology and recent visa restrictions on Chinese students have drawn sharp responses from Beijing. Trade analysts remain skeptical about whether the framework will yield lasting results, but having the two sides back at the negotiating table, and talking beyond tariffs, may be the clearest sign yet that both sides are feeling the pressure to avoid a renewed economic spiral.

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