US, China Near Easing Export Controls Amid Global Trade Tensions

The ongoing US-China trade talks in London represent a critical effort by the two largest economies to resolve escalating trade tensions that began with tariff disputes. President Donald Trump has authorized Treasury Secretary Scott Bessent to lift certain export controls on Chinese products, including jet engines, chip-making software, and ethane, as a key bargaining tool in the negotiations, with the objective of securing China's commitment to resume rare earth shipments. Both sides are expected to continue airing grievances and negotiating over the scope of export controls and tariffs, with discussions likely extending beyond a single day. These talks follow a preliminary agreement in Geneva last month, which temporarily eased tensions but left unresolved issues, especially regarding rare earths and supply chain concerns. Meanwhile, China's export growth has slowed sharply due to US tariffs, leading to economic pressures domestically and globally, and prompting Beijing to introduce stimulus measures. Market reactions have been mixed, with slight gains in some US stock indices and fluctuations in bond yields and currency values as investors await the outcome of the talks.