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U.S., China trade talks going well on 2nd day, Lutnick says – National [Video]

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Canadian Economy and Markets

U.S. Commerce Secretary Howard Lutnick said on Tuesday trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers.

Having agreed to step back from a full-blown trade embargo at a first round of talks in Geneva in May, the two sides are now seeking agreement after they accused each other of trying to throttle supply chains with a raft of export controls.

White House economic adviser Kevin Hassett said on Monday that the U.S. could lift recently imposed export controls on goods such as semiconductors if China sped up the delivery of rare earths and magnets that are crucial to its economy.

The blow-up over rare earths, which has sparked alarm in boardrooms and factory floors around the world, came after last month’s preliminary deal in Geneva to cut tariffs, which eased investor fears that a trade war would …

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