US-China trade talks to open in London as new disputes emerge

US-China trade talks in London this week are expected to take up a series of fresh disputes that have buffeted relations, threatening a fragile truce over tariffs.Both sides agreed in Geneva last month to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of recession.Since then, the US and China have exchanged angry words over advanced semiconductors that power artificial intelligence, “rare earths” that are vital to carmakers and other industries, and visas for Chinese students at American universities.President Trump spoke at length with Chinese leader Xi Jinping by phone last Thursday in an attempt to put relations back on track.Trump announced on social media the next day that trade talks would be held on Monday in London.The latest frictions began just a day after the May 12 announcement of the Geneva agreement to “pause” tariffs for 90 days.The US Commerce Department issued guidance saying the use of Ascend AI chips from Huawei, a leading Chinese tech company, could violate US export controls.

That’s because the chips were likely developed with American technology despite restrictions on its export to China, the guidance said.The Chinese government wasn’t pleased.One of its biggest beefs in recent years has been over US moves to limit the access of Chinese companies to technology, and in particular to equipment and processes needed to produce the most advanced semiconductors.“The Chinese side urges the US side to immediately correct its erroneous practices,” a Commerce Ministry spokesperson said.US Commerce Secretary Howard Lutnick wasn’t in Geneva but will join the talks in London.

Analysts say that suggests at least a willingness on the US side to hear out China’s concerns on export controls.One area where China holds the upper hand is in the mining and processing of rare earths.They are crucial for not only autos but also a range of other ...