U.S. Officials Seek Rare Earths Agreement with China in London Talks
U.S. seeks rare earths handshake with China in London to ease export controls and stabilize trade tensions.
Top U.S. trade officials are meeting with Chinese counterparts in London with the goal of finalizing a rare earths agreement reached earlier by Presidents Donald Trump and Xi Jinping. According to White House economic adviser Kevin Hassett, the meeting is expected to result in a symbolic handshake that would mark progress in easing trade tensions between the two nations.
“The purpose of the meeting today is to make sure that they’re serious, but to literally get handshakes,” said Hassett, who serves as the director of the National Economic Council. “I expect it to be a short meeting with a big, strong handshake.”
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer are representing Washington in the talks. The discussions come amid growing concerns over the expansion of the trade dispute to include Chinese restrictions on rare earth exports—critical materials used in manufacturing, including in the automotive and tech sectors.
Hassett highlighted China's control over the global supply of rare earth elements and warned that ongoing restrictions could significantly impact U.S. industries. “With China controlling most of the global rare earth and magnet supply, its restrictions on sending those to the U.S. could disrupt production for American companies, including automakers,” he said.
When asked about China’s objection to U.S. export controls on semiconductors, Hassett suggested that both sides are prepared to make concessions following the handshake. “Our expectation is that after the handshake, then immediately after the handshake, any export controls from the U.S. will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters,” he added.
The meeting in London is being closely watched by industries and governments alike, as rare earths are essential components in advanced technologies and global supply chains.
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