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Chinese tech giant Huawei’s chips still “lag behind the United States by one generation”, state media quoted its founder and CEO Ren Zhengfei as saying in a rare interview on Tuesday.Washington last month unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically Huawei’s Ascend chips, would put them at risk of violating US export controls.The Shenzhen-based company has been at the centre of an intense standoff between the economic supergiants after Washington warned its equipment could be used for espionage byBeijing, an allegation Huawei denies.Speaking to the People’s Daily, the official newspaper of the ruling Communist Party, 80-year-old Ren insisted the United States had “exaggerated” Huawei’s achievements.Tougher controls in recent years have prevented US chip giant Nvidia, one of Huawei’s rivals, from selling certain AI semiconductors — widely regarded as the most advanced in the world — to Chinese firms.As a result, it is now facing tougher competition from local players in the crucial market, including Huawei.Nvidia’s chief executive Jensen Huang told reporters last month that Chinese companies “are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development”.But Ren said Huawei was “not that great yet”, according to the article published on the newspaper’s front page Tuesday.”Many companies in China are making chips, and quite a few are doing well — Huawei is just one of them,” he added.When asked about “external blockades and suppression” — a veiled reference to US export restrictions on Beijing — Ren said he had “never thought about it”.”Don’t dwell on the difficulties, just get the job done and move forward step by step,” he added. Sanctions since 2019 have curtailed the firm’s access to US-made components and technologies, forcing it to diversify its growth strategy.China has accused the United States of “bullying” and “abusing export controls to suppress and contain” the country’s firms.

Indonesia revoked permits on Tuesday for four of the five mining companies operating in the eastern archipelago of Raja Ampat after activists shared videos of islands damaged by nickel extraction.The cluster of islands and shoals in Southwest Papua Province sits in the Coral Triangle and is thought to be one of the world’s most pristine reefs, with its clear blue waters making it a popular diving spot.Indonesia has the world’s largest nickel reserves and is the biggest producer of the metal, which is used in electric vehicle batteries and stainless steel, and a 2020 export ban has spurred a domestic industrial boom.Last week, Greenpeace Indonesia published videos showing environmental damage to three islands because of nickel mining projects, including one clip which racked up more than 15 million Instagram views.President Prabowo Subianto “decided that the government will revoke the mining business licence of four companies in Raja Ampat”, state secretariat minister Prasetyo Hadi told reporters.Energy and mineral resources minister Bahlil Lahadalia said “they have violated” regulations.”We believe this region must be protected,” he said.Greenpeace said nickel exploitation on the islands of Gag, Kawe and Manuran had led to the destruction of more than 500 hectares (1,200 acres) of forest and vegetation.Environmentalists say coral reefs and marine life are threatened by the operations, but Bahlil denied the surrounding environment had been harmed.”If people say the coral reefs and the ocean have been damaged, you can see for yourself. Please be careful to differentiate which one is real and which one is not,” he said.- ‘Make sure they stop’ -The NGO’s campaign led to growing calls by politicians and celebrities for the licences to be withdrawn.The four companies impacted by the immediate ban are PT Anugerah Surya Pratama, PT Nurham, PT Kawei Sejahtera Mining and PT Mulia Raymond Perkasa. PT Nurham received its mining permits this year and has not started production but the other three have had them since 2013, according to the energy ministry.One more company — PT Gag Nikel — will continue to operate on Raja Ampat’s Gag island but be closely monitored, said Bahlil. It received its operational permit in 2017.The three affected islands are categorised as small islands that under Indonesian law should be off-limits to mining, Greenpeace said.Greenpeace Indonesia said the decision was a good start but the government needed to take further action.”We appreciate this decision but we need to make sure the decision will be implemented. We need to make sure they stop,” forest campaign team leader Arie Rompas said.He warned the government could reissue the permits later or the companies could appeal the decision in court.The activist said the government should also revoke the operating permit for the fifth company.A report last week by Climate Rights International alleged the Indonesian government was allowing environmental damage and violations against Indigenous people to go unchecked by nickel mining firms in the eastern Maluku islands.Processing and mining operations have grown there around Weda Bay, the world’s largest nickel mine by production, but have led to locals reporting a spike in air pollution from smelters and rivers polluted by nickel tailings in soil carried by rain.An AFP report last month detailed how the home of the nomadic Hongana Manyawa tribe was being eaten away by that mine, with members issuing a call for nickel companies to leave their tribal lands alone.

Asian stocks squeezed out more gains Tuesday as the latest round of China-US trade talks moved into a second day, with one of Donald Trump’s top advisers saying he expected “a big, strong handshake”.There is optimism the negotiations — which come after the US president spoke to Chinese counterpart Xi Jinping last week — will bring some much-needed calm to markets and ease tensions between the economic superpowers.The advances in Asian equities built on Monday’s rally and followed a broadly positive day on Wall Street, where the S&P 500 edged closer to the record high touched earlier in the year.This week’s meeting in London will look to smooth relations after Trump accused Beijing of violating an agreement made at a meeting of top officials last month in Geneva that ended with the two sides slashing tit-for-tat tariffs.The key issues on the agenda at the talks are expected to be exports of rare earth minerals used in a wide range of things including smartphones and electric vehicle batteries.”In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” Trump’s top economic adviser, Kevin Hassett, told CNBC on Monday.But even though Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal”, he added.Still, he said he expected “a big, strong handshake” at the end of the talks.”Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume,” Hassett added.He also said the Trump administration might be willing to ease some recent curbs on tech exports.The president told reporters at the White House: “We are doing well with China. China’s not easy.”I’m only getting good reports.”Tokyo led gains in Asian markets, with Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington and Jakarta also well up.”The bulls will layer into risk on any rhetoric that publicly keeps the two sides at the table,” said Pepperstone’s Chris Weston.”And with the meeting spilling over to a second day, the idea of some sort of loose agreement is enough to underpin the grind higher in US equity and risk exposures more broadly.”Investors are also awaiting key US inflation data this week, which could impact the Federal Reserve’s monetary policy amid warnings Trump’s tariffs will refuel inflation strengthening the argument to keep interest rates on hold.However, it also faces pressure from the president to cut rates, with bank officials due to make a decision at their meeting next week.While recent jobs data has eased concerns about the US economy, analysts remain cautious.”Tariffs are likely to remain a feature of US trade policy under President Trump,” said Matthias Scheiber and John Hockers at Allspring Global Investments.”A strong US consumer base was helping buoy the global economy and avoid a global recession.”However, they also warned: “The current global trade war coupled with big spending cuts by the US government and possibly higher US inflation could derail US consumer spending to the point that the global economy contracts for multiple quarters.”- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 1.0 percent at 38,473.97 (break)Hong Kong – Hang Seng Index: UP 0.4 percent at 24,275.16Shanghai – Composite: UP 0.2 percent at 3,405.64Euro/dollar: DOWN $1.1394 from $1.1420 on MondayPound/dollar: DOWN at $1.3530 from $1.3552Dollar/yen: UP at 145.14 yen 144.60 yenEuro/pound: DOWN 84.21 from 84.27 penceWest Texas Intermediate: UP 0.5 percent at $65.61 per barrelBrent North Sea Crude: UP 0.5 percent at $67.37 per barrelNew York – Dow: FLAT at 42,761.76 (close)London – FTSE 100: DOWN 0.1 percent at 8,832.28 (close)

In a world hungry for crucial resources, China may not be poised to start deep-sea mining but it is planting seeds for such operations in a meticulously planned economic and geopolitical strategy.The world’s oceans, both international waters and those under national jurisdiction, are rich in minerals and metals, like cobalt, nickel and copper.These are important for building electric car batteries, for instance, and other technologies as countries try to transition away from fossil fuels.China “is an energy-thirsty country. It will look for resources everywhere,” including the deep sea, said Julia Xue of Shanghai Jiao Tong University.But she said China is not particularly anxious over the issue, although recent developments — one company is itching to be the first to start mining the sea bed — may put more pressure on Beijing.A Canadian firm, The Metals Company, has filed an application with the United States to begin undersea mining in international waters.Using its American subsidiary, it acted after President Donald Trump, bypassing international negotiations, signed an executive order in April to speed up the permit-issuing process for such mining in US and international waters.Trump cited an obscure 1980 US law that says American citizens can explore for and recover deep sea minerals in areas beyond the country’s jurisdiction.Environmental groups are outraged by Trump’s order, arguing that a wild hunt for the potato-sized, metal-containing nodules could harm fragile undersea ecosystems.The Canadian company initially said it would submit its request to the International Seabed Authority (ISA), a body which has jurisdiction over the ocean floor in international waters.The Metals Company says it ignored this authority because of its slow pace in talks on adopting a mining code that establishes rules for exploiting seabed resources. The United States is not an ISA member.A long-time observer of those talks who spoke on condition of anonymity said China is not particularly worried about who starts mining first.”For them it’s more about dominance, staying competitive in the game, and giving the impression that you can’t mess with us,” the observer said.With that goal in mind “they’re definitely developing the technology and putting the strategic agreements in place,” Alex Gilbert, a researcher at the Payne Institute for Public Policy at Colorado School of Mines, told AFP.For instance, China has reached an agreement with the Cook Islands to explore for minerals in that Pacific country’s waters.Another tiny Pacific nation, Kiribati, also says it is exploring a deep-sea mining partnership with China.This approach is “more geopolitical than economic,” said Emmanuel Hache of the French Institute for International and Strategic Affairs, noting Beijing is using undersea mining as a lure to cement greater diplomatic support as it exerts power.China holds five contracts handed out by the ISA to look for resources in the Pacific and Indian Ocean sea beds and these contracts cover all types of undersea mineral resources. China’s is the largest number of the 22 contracts the organization has granted.- Years behind -“From a research perspective, we have been continuously getting closer. And from a technical perspective, we have been continuously improving,” said Chen Xuguang, a researcher at Ocean University of China.In 2024 a Chinese prototype deep-sea mining vehicle called Pioneer II, developed by Shanghai Jiao Tong University, set a national record by operating at a depth of more than 4,000 meters (13,100 feet).State-owned Beijing Pioneer Hi-Tech Development Corporation told AFP that later this year it plans a seabed nodule collection test.    Still, China is not as advanced technologically as The Metals Company, experts say.”I would characterize China as being two to four years behind them in terms of their technology,” said Gilbert in Colorado.Hache, the French expert, put the gap at five years.But China has an advantage over firms like the Canadian one in recovering and processing nodules: its companies are supported by the state and China has infrastructure for processing metals.The observer of the international seabed talks said China does not need seabed mining for metal supply, “but maybe geopolitically, in the context of maintaining their control over the commodities market.”China wants to keep its options open, this person said.And while it supports an international mining code, China does not need one now and “they’re not going to put pressure until they’ve decided strategically that they’re ready,” said Gilbert.

United States and Chinese officials are set to meet Tuesday for a second day of trade talks in London, seeking to shore up a shaky tariff truce in a spat further strained by export curbs.The gathering of key officials from the world’s two biggest economies began Monday in the historic Lancaster House, run by the UK Foreign Office, following an earlier round of talks in Geneva last month.Chinese Vice Premier He Lifeng was again heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang.Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation.A source familiar with negotiations told AFP that talks wrapped up Monday evening and are expected to restart Tuesday at 10:00 am local time (0900 GMT).The London meeting came after Washington accused Beijing of violating their Geneva deal to de-escalate staggeringly high tariffs.A key sticking point was the export of rare earths from China.”In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” Kevin Hassett, director of the White House’s National Economic Council, told CNBC on Monday.But even though Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal,” Hassett added.This issue was raised last week in US President Donald Trump’s first publicly announced telephone talks with Chinese President Xi Jinping since the Republican’s return to the White House.Trump said on his Truth Social platform that Thursday’s long-awaited call reached a “very positive conclusion”.On Monday, the US leader told reporters that he was “only getting good reports” on the trade talks, adding: “We are doing well with China. China is not easy.”- US easing curbs? -US official Hassett said he expected “a big, strong handshake” at the trade negotiations.”Our expectation is that after the handshake,” Hassett added, “any export controls from the US will be eased, and the rare earths will be released in volume.”Both sides can then “go back to negotiating smaller matters,” he said.Tensions between Washington and Beijing have soared since Trump took office, with both countries engaging in a tariffs war that took duties on each other’s exports to three figures — an effective trade embargo.The Geneva pact to cool tensions temporarily brought new US tariffs on Chinese goods from 145 percent to 30 percent, and Chinese countermeasures from 125 percent to 10 percent.But Trump recently said China “totally violated” the deal. A key issue was Beijing’s shipments of rare earths, crucial to goods including electric vehicle batteries.”Rare earth shipments from China to the US have slowed since President Trump’s ‘Liberation Day’ tariffs in April,” said Kathleen Brooks, research director at trading group XTB.Brooks was referring to when Trump slapped sweeping levies of 10 percent on friend and foe alike, and threatened steeper rates on dozens of economies.”The US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers,” Brooks added.Hassett’s statement signaled the Trump administration might be willing to ease some recent curbs on tech exports.- ‘Green channel’ -Throughout its talks with Washington, China has also launched discussions with other trading partners — including Japan and South Korea — to try to build a united front to counter Trump’s tariffs.On Thursday, Beijing and Canada agreed to regularise their channels of communication after strained ties.Beijing has also proposed establishing a “green channel” to ease exports of rare earths to the European Union, and fast-tracking approval of some export licenses.China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties.According to a UK government spokesperson, Finance Minister Rachel Reeves took advantage of the London talks to meet with her US counterpart Bessent and Chinese Vice Premier He on Sunday.

Global stocks were mixed Monday as markets monitored high stakes US-China trade talks and awaited key inflation data later in the week.Trade representatives for the world’s two biggest economies plan a second day of talks on Tuesday in London following an opening round on Monday. Although there were no breakthroughs, the market has welcomed the negotiations.”There’s hopes that they’re inching closer to some sort of a deal,” said Peter Cardillo of Spartan Capital Securities.New York’s blue-chip Dow index finished flat while the broader S&P 500 and tech-heavy Nasdaq rose modestly.Asian shares closed up on hopes of a deal, and catching up with Wall Street from Friday, when US jobs data suggested the American economy was doing well, for now.The dollar, however, dipped amid fears of higher US inflation in the pipeline from Trump’s generalized tariffs weighing on it.London, Paris and Frankfurt indices all closed lower.While the US economy has been showing resilience, official data on Monday showed China’s exports to the United States last month grew at a slower pace than expected, even as they picked up to the EU and Asia.The US-China talks took place following a call between US President Donald Trump and Chinese President Xi Jinping last Thursday. They sought a de-escalation after each had accused the other of violating terms of a tariffs reprieve struck in Geneva in mid-May.”Some kind of accord would be welcome, but they might even be happy if the two sides merely agree to keep talking,” said Chris Beauchamp, chief market analyst at online trading platform IG.Easing China’s export controls on rare-earths was key for Washington, “while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers,” said Kathleen Brooks, research director at XTB.”The outcome of these discussions will be crucial for market sentiment,” she said. The dollar’s weakness came as economists warned that Trump’s tariffs on most of the world could reignite inflation, and as the US Federal Reserve weighs whether to lower interest rates.In corporate news, entertainment giant Warner Bros. Discovery announced plans to split into two publicly traded companies. One would be a streaming and studios company covering film and TV production and catalogues, and the other a global network company with television brands including CNN and Discovery, and free-to-air channels in Europe.US semiconductor maker Qualcomm also announced it was buying a UK firm, Alphawave, for $2.4 billion as demand for database infrastructure heated up from demand in the AI sector.Alphawave shares in London jumped almost 19 percent.Qualcomm’s shares rose 4.1 percent in New York.This week’s agenda includes releases on US consumer and producer prices, key benchmarks on inflation.- Key figures at around 2040 GMT -New York – Dow: FLAT at 42,761.76 (close)New York – S&P 500: UP 0.1 percent at 6,00 (close)New York – Nasdaq Composite: UP 0.3 percent at 19,591.24 (close)London – FTSE 100: DOWN 0.1 percent at 8,832.28 (close)Paris – CAC 40: DOWN 0.2 percent at 7,791.47 (close)Frankfurt – DAX: DOWN 0.5 percent at 24,174.32 (close)Tokyo – Nikkei 225: UP 0.9 percent at 38,088.57 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 24,181.43 (close)Shanghai – Composite: UP 0.4 percent at 3,399.77 (close)Euro/dollar: UP $1.1420 from $1.1397 on FridayPound/dollar: UP at $1.3552 from $1.3528Dollar/yen: DOWN at 144.60 yen from 144.85 yenEuro/pound: UP 84.27 from 84.23 penceBrent North Sea Crude: UP 0.9 percent at $67.04 per barrelWest Texas Intermediate: UP 1.1 percent at $65.29 per barrel

US-China trade talks in London held markets’ attention on Monday, with Asian stocks rising, Wall Street mixed and Europe dipping.The London negotiations, following on from a first round in Geneva last month, aim to quell renewed tariff tensions between Washington and Beijing.New York’s blue-chip Dow index was lower, while the broader S&P 500 was flat and the tech-heavy Nasdaq rose modestly in late morning trading.Asian shares closed up on hopes of a deal, and catching up with Wall Street from Friday, when US jobs data suggested the American economy was doing well, for now.The dollar, however, dipped amid persistent fears of higher US inflation in the pipeline from Trump’s generalised tariffs weighing on it.London, Paris and Frankfurt indices all closed lower.While the US economy has been showing resilience, official data on Monday showed China’s exports to the United States last month grew at a slower pace than expected, even as they picked up to the EU and Asia.The US-China talks took place following a call between US President Donald Trump and Chinese President Xi Jinping last Thursday. They sought a de-escalation after each had accused the other of violating terms of a tariffs reprieve struck in Geneva in mid-May.”Some kind of accord would be welcome, but they might even be happy if the two sides merely agree to keep talking,” said Chris Beauchamp, chief market analyst at online trading platform IG.”To jaw jaw is better than to (trade) war war, it seems,” he said a note to clients.The US side in London on Monday was being led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, while Vice Premier He Lifeng headed the Chinese team.Their meeting was helped by news that Beijing on Saturday approved some applications for rare-earth exports, while US aviation giant Boeing is to start sending commercial jets to China for the first time since April.Easing China’s export controls on rare-earths was key for Washington, “while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers,” said Kathleen Brooks, research director at XTB.”The outcome of these discussions will be crucial for market sentiment,” she said. The dollar’s weakness came as economists warned that Trump’s tariffs on most of the world could reignite inflation, and as the US Federal Reserve weighs whether to lower interest rates.In corporate news, entertainment giant Warner Bros. Discovery announced plans to split into two publicly traded companies, sending its share price higher by more than seven percent.One would be a Streaming and Studios company covering film and TV production and catalogues, and the other a Global Network company with television brands including CNN and Discovery, and free-to-air channels in Europe.US semiconductor maker Qualcomm also announced it was buying a UK firm, Alphawave, for $2.4 billion as demand for database infrastructure heated up from demand in the AI sector.Alphawave shares in London jumped almost 19 percent.Qualcomm’s shares rose 3.6 percent in New York.- Key figures at around 1530 GMT -New York – Dow: DOWN 0.2 percent at 42,659.60 pointsNew York – S&P 500: FLAT at 6,001.34New York – Nasdaq Composite: UP 0.3 percent at 19,579.59London – FTSE 100: DOWN less than 0.1 percent at 8,832.28 (close)Paris – CAC 40: DOWN 0.2 percent at 7,791.47 (close)Frankfurt – DAX: DOWN 0.5 percent at 24,174.32 (close)Tokyo – Nikkei 225: UP 0.9 percent at 38,088.57 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 24,181.43 (close)Shanghai – Composite: UP 0.4 percent at 3,399.77 (close)Euro/dollar: UP $1.1421 from $1.1397 on FridayPound/dollar: UP at $1.3558 from $1.3529Dollar/yen: DOWN at 144.41 yen from 144.81 yenEuro/pound: UNCHANGED at 84.23 penceBrent North Sea Crude: UP 0.9 percent at $67.06 per barrelWest Texas Intermediate: UP 1.0 percent at $65.25 per barrel

China and the United States began a new round of trade talks in London on Monday, Beijing’s state media reported, as the world’s two biggest economies seek to shore up a shaky truce after bruising tit-for-tat tariffs.The two sides are meeting in the historic Lancaster House, run by the UK Foreign Office, following a first round of talks in Geneva last month.Chinese Vice Premier He Lifeng was again heading the team in London. Chinese state news agency Xinhua reported the start of the talks.Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation, President Donald Trump said Friday.”The meeting should go very well,” Trump said on his Truth Social platform.His press secretary, Karoline Leavitt, told Fox News on Sunday: “We want China and the United States to continue moving forward with the agreement that was struck in Geneva.”While the UK government reiterated that it was not involved in the discussions, a spokesperson said: “We are a nation that champions free trade.”UK authorities “have always been clear that a trade war is in nobody’s interests, so we welcome these talks”, the spokesperson added.- Rare earths -The talks in London come just a few days after Trump and Chinese President Xi Jinping finally held their first publicly announced telephone talks since the Republican returned to the White House.Trump said Thursday’s call reached a “very positive conclusion”.Xi was quoted by Xinhua as saying “correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction”.Tensions between the two nations have soared, with Trump accusing Beijing of violating a tariff de-escalation deal reached in Geneva in mid-May.”We need China to comply with their side of the deal. And so that’s what the trade team will be discussing tomorrow,” Leavitt said Sunday. A key issue will be Beijing’s shipments of rare earths — crucial to a range of goods including electric vehicle batteries and which have been a bone of contention for some time.”Rare earth shipments from China to the US have slowed since President Trump’s ‘Liberation Day’ tariffs in April,” said Kathleen Brooks, research director at trading group XTB. “The US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers,” she added.In April, Trump introduced sweeping worldwide tariffs that targeted China most heavily.At one point, Washington hit Beijing with additional levies of 145 percent on its goods, prompting China to respond with tariffs reaching 125 percent on US goods. After two days of talks in Switzerland, both sides agreed to slash the eye-watering tariffs for 90 days, but key differences remain — especially over China’s rare earth export restrictions.The impact was reflected in the latest official export data released Monday in Beijing. Exports to the United States fell 12.7 percent in May from the previous month, with China shipping $28.8 billion worth of goods.This was down from $33 billion in April, according to Beijing’s General Administration of Customs.- ‘Green channel’ -Throughout its talks with Washington, China has also launched discussions with other trading partners — including Japan and South Korea — to try to build a united front to counter Trump’s tariffs.On Thursday, Beijing and Canada agreed to regularise their channels of communication after strained ties.Beijing has also proposed establishing a “green channel” to ease exports of rare earths to the European Union, and fast-tracking approval of some export licenses.China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties.According to a spokesperson for Starmer, Britain’s finance minister Rachel Reeves took advantage of the talks in London to meet with her US counterpart Scott Bessent and Chinese Vice Premier He Lifeng on Sunday.

The United States and China are to sit down at the negotiating table in London on Monday to attempt to preserve a fragile truce on trade, despite simmering tensions.Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation, President Donald Trump announced on Friday.Chinese Vice Premier He Lifeng — who led Beijing’s negotiating team at previous talks with the United States last month in Geneva — would also head the team in London, China’s foreign ministry announced at the weekend.”The meeting should go very well,” Trump said on his Truth Social platform.His press secretary, Karoline Leavitt, told Fox News on Sunday: “We want China and the United States to continue moving forward with the agreement that was struck in Geneva.”While the UK government reiterated that it was not involved in the content of the discussions in any way, a spokesperson said: “We are a nation that champions free trade.”UK authorities “have always been clear that a trade war is in nobody’s interests, so we welcome these talks,” the spokesperson added.- Rare earths -The talks in London come just a few days after Trump and Chinese President Xi Jinping finally held their first publicly announced telephone talks since the Republican returned to the White House.Trump said the call, which took place on Thursday, had reached a “very positive conclusion.”Xi was quoted by state-run news agency Xinhua as saying that “correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction”.The call came after tensions between the world’s two biggest economies soared, with Trump accusing Beijing of violating a tariff de-escalation deal reached in Geneva in mid-May.”We need China to comply with their side of the deal. And so that’s what the trade team will be discussing tomorrow,” Leavitt said Sunday. A key issue in the negotiations will be Beijing’s shipments of rare earths — crucial to a range of goods including electric vehicle batteries and which have been a bone of contention for some time.”Rare earth shipments from China to the US have slowed since President Trump’s ‘Liberation Day’ tariffs in April,” said Kathleen Brooks, research director at trading group XTB. “The US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers,” she added.In April, Trump introduced sweeping worldwide tariffs that targeted China most heavily.At one point the United States hit China with additional levies of 145 percent on its goods as both sides engaged in tit-for-tat escalation. China’s countermeasures on US goods reached 125 percent.Then in Switzerland, after two days of talks, the two sides agreed to slash their staggeringly high tariffs for 90 days.But differences have persisted, including over China’s restrictions on exporting rare earth minerals.The impact was reflected in the latest official export data released Monday in Beijing. Exports to the United States fell 12.7 percent on month in May, with China shipping $28.8 billion worth in goods last month.This is down from $33 billion in April, according to Beijing’s General Administration of Customs.There is also huge uncertainty around the outcome of other trade disputes.- ‘Green channel’ -Throughout its talks with Washington, China has also launched discussions with other trading partners — including Japan and South Korea — in a bid to build a united front to counter Trump’s tariffs.On Thursday, Beijing turned to Canada, with the two sides agreeing to regularise their channels of communication after a period of strained ties.Canadian Prime Minister Mark Carney and Chinese Premier Li Qiang also discussed trade and the fentanyl crisis, Ottawa said.Beijing has also proposed establishing a “green channel” to ease the export of rare earths to the European Union, and the fast-tracking approval of some export licenses.China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties.

Stock markets diverged and the dollar dropped on Monday as investors digested key economic data and looked to a fresh round of China-US trade talks.Asian markets caught up with gains Friday on Wall Street and in Europe on news that the United States created a forecast-beating 139,000 jobs last month.That helped offset official data on Monday showing Chinese exports grew at a slower pace than expected last month and concerns over the US economy amid President Donald Trump’s tariffs blitz.The Chinese data “created hope of further interventions from Beijing to stoke the economy and investors also looked ahead to talks between US and Chinese officials in London aimed at reaching an agreement on trade”, noted AJ Bell investment director Russ Mould.The talks come days after Trump and Chinese counterpart Xi Jinping held their first publicly announced telephone talks since the Republican returned to the White House.They were helped by news that Beijing had on Saturday approved some applications for rare-earth exports, while US aviation giant Boeing will start sending commercial jets to China for the first time since April.The impact of the trade row was highlighted on Monday in data showing Chinese exports to the United States sank more than 34 percent on-year in May and almost 13 percent from the previous month.However shipments to other regions, including the European Union and countries in the Association of Southeast Asian Nations, surged.Separate data showed Chinese consumer prices fell in May for the fourth straight month.Optimism that the two sides could make a breakthrough boosted Asian markets, with Hong Kong up more than one percent, while Tokyo, Shanghai, Seoul, Singapore, Mumbai, Bangkok, Taipei and Manila also advanced.However, London, Paris and Frankfurt struggled around the half-way stage.The Asian gains followed a strong lead from Wall Street, where all three main US indices closed more than one percent higher Friday.Eyes will now turn to the Federal Reserve as it decides whether to lower interest rates, even as many economists warn that Trump’s tariffs could reignite inflation, hit supply chains and drag on consumer sentiment.”The May minutes and recent comments by several (policy board) members… suggest the Fed is highly attentive to the risk that tariffs will lead to a persistent inflation shock,” wrote analysts at Bank of America.- Key figures at around 1040 GMT -London – FTSE 100: DOWN 0.1 percent at 8,829.36 pointsParis – CAC 40: DOWN 0.1 percent at 7,797.24 Frankfurt – DAX: DOWN 0.4 percent at 24,208.85Tokyo – Nikkei 225: UP 0.9 percent at 38,088.57 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 24,181.43 (close)Shanghai – Composite: UP 0.4 percent at 3,399.77 (close)New York – Dow: UP 1.1 percent at 42,762.87 (close)Euro/dollar: UP at $1.1421 from $1.1397 on FridayPound/dollar: UP at $1.3566 from $1.3529Dollar/yen: DOWN at 144.12 yen from 144.81 yenEuro/pound: DOWN at 84.18 pence from 84.23 penceBrent North Sea Crude: UP 0.3 percent at $66.67 per barrelWest Texas Intermediate: UP 0.3 percent at $64.79 per barrel