Trade negotiations between the U.S. and China extended into a second full day and evening session on Tuesday in London, as each side pressed for resolution on competing export control measures.
A U.S. Treasury spokesperson told reporters that the sessions had paused and were set to resume at around 8 p.m. local time (19:00 GMT).
No substantive details were disclosed after more than five hours of talks following a full day of discussions on Monday.
U.S. Commerce Secretary Howard Lutnick reported the meetings were “going well,” echoing President Trump’s upbeat tone.
He said, “(Talks went on) all day yesterday, and I expect (them) all day today. They’re going well, and we’re spending lots of time together.”
A White House official also described the discussions as going “fine,” but declined further comment.
The talks follow a May agreement in Geneva to postpone full-scale trade sanctions. The focus now centers on export controls that both nations accuse each other of deploying to disrupt supply chains.
On Monday, White House economic adviser Kevin Hassett said the U.S. might lift some semiconductor controls if China increased shipments of rare-earth minerals and magnets.
This pressure campaign over rare earths has alarmed global industries and followed the preliminary Geneva accord aimed at reducing tariffs.
Trade expert William Reinsch of the Center for Strategic and International Studies suggested the extended discussion reflects negotiation challenges.
“My read is Trump is very anxious his team comes back with something he can brag about, and it looks like the Chinese are holding out. That said, I expect there to be some kind of agreement eventually, and you can be sure he’ll call it a big success, regardless of what’s in it.”
Markets have largely recovered from April sell‑offs prompted by Trump’s “Liberation Day” tariffs, thanks in part to the Geneva reset.
This second round of talks follows a rare call last week between Trump and Chinese President Xi Jinping.
May customs data showed China’s exports to the U.S. fell 34.5 %—the steepest drop since the COVID‑19 pandemic began.
Despite limited impact on U.S. inflation and jobs data, tariffs have dented U.S. business confidence and pressured the dollar.
Key U.S. negotiators include Treasury Secretary Scott Bessent, Lutnick, and Trade Representative Jamieson Greer. China’s delegation is led by Vice Premier He Lifeng.
The inclusion of Lutnick, responsible for export controls, underscores the importance of rare-earths in the talks. China’s April embargo on critical minerals disrupted global supply chains.
In response, the U.S. later restricted semiconductors, aviation technology, and related equipment amid license revocations.
Hassett indicated that easing of export restrictions may hinge on China providing rare-earth resources. However, high-end AI chips from Nvidia are likely to remain restricted.
“I’m talking about possible export controls on other semiconductors which are also very important to them,” he noted, distinguishing Nvidia’s “very, very high-end” products as excluded from any relaxation.