US-China trade talks to resume for second day

Top US and Chinese officials will resume trade talks for a second day in London on June 10, hoping to secure a breakthrough over export controls for goods such as rare earths that have threatened a global supply chain shock and slower economic growth, Report informs via Reuters.

Investors are hoping that the two superpowers can improve ties after the relief sparked by a preliminary trade deal agreed in Geneva last month gave way to fresh doubts after Washington accused Beijing of blocking exports that are critical to sectors including autos, aerospace, semiconductors and defence.

The talks come at a crucial time for both economies, with customs data showing that China's exports to the US plunged 34.5% in May, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade.

While the impact on US inflation and the jobs market has so far been muted, the dollar remains under pressure from US policymaking.

The two sides met at the ornate Lancaster House in the British capital on Monday to discuss disagreements around the Geneva deal, and are due to resume talks early on Tuesday before both sides are expected to issue updates.

The US side is led by US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, while the Chinese contingent is helmed by Vice Premier He Lifeng.