US-China trade talks show progress but deep divisions remain, say analysts

ANALYSTS said on Wednesday (June 11) that U.S.-China trade talks in London have shown signs of progress, but deep geopolitical divisions remain a barrier to any significant breakthrough.

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US and China held trade talks in London focusing on rare earths and tariff rollbacks, with more talks planned before August 10.
Analysts say the talks are a positive step but not expected to resolve deeper tensions between the two major powers.
Both countries are negotiating primarily to protect their own strategic and economic interests.

The two-day negotiations, held at Lancaster House, focused on key issues such as rare earth exports and tariff rollbacks, with both sides agreeing to continue discussions ahead of an August 10 deadline. While the willingness to engage is seen as a positive step, analysts caution that the talks are unlikely to resolve the long-standing tensions between the world’s two largest economies.

Stephen Nagy, a professor of politics and international studies based in Tokyo, said whether this momentum continues depends on whether the framework meets the strategic needs of Presidents Xi Jinping and Donald Trump.

“I believe expectations are quite low at the moment,” Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy in Singapore, told Reuters. “The focus is on negotiating for the best possible outcomes that serve their own interests,” Wu added.