Experts' view on second round of U.S.-China trade talks involving chips, rare earths

Over in London.

American and Chinese delegates are resuming a second session of trade talks on this Tuesday following their first session on Monday to address differences over the deal reached in Geneva.

Park Jun-han covers these talks as well as their prospects by pundits here.

The United States and China on Monday discussed export controls — specifically, the easing of U.S. technological export restrictions in exchange for greater access to China's rare earth metals.

This was on the agenda for the first day of the second round of talks in London.

According to a Financial Times report, U.S. President Trump said he could ease chip exports to China if Beijing agrees to accelerate the export of rare earth metals and magnets to the United States.

Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer led the U.S. delegation.

The Chinese side was headed by Vice Premier He Lifeng.

While U.S. chip exports and China's control of rare earths could serve as leverage in negotiations, experts say the talks are unlikely to significantly improve market access for either side.

"I don't think these trade talks are likely to bring fundamental changes in the U.S.-China relationship at this point, and so the negotiations won't end here. Korea should keep a close eye on the situation and prepare appropriate responses."

"On the surface, there may be some concessions between the U.S. and China. However, China can restrict rare earth exports at any time, and the U.S. is only partially easing controls on legacy semiconductors. Therefore, I believe this military-like battle for technological hegemony over high-tech industries between the two nations is likely to continue."

Earlier in May, the two countries agreed to significantly reduce tariffs on each other's goods for 90 days.

However, following the Geneva agreement, the United States claimed that China had violated the terms by maintaining export controls on rare earth metals, despite pledging to lift non-tariff barriers.

China denied the accusation and instead accused the U.S. of taking discriminatory actions, such as canceling visas for Chinese students.

Meanwhile, the two countries are set to hold further talks at 10 AM on Tuesday.

Park Jun-han, Arirang News.