The first meeting of the China-U.S. Trade Consultation Mechanism took place in London from June 9 to 10, 2025, marking a significant step toward stabilizing and rebalancing the world’s most critical bilateral trade relationship. The high-level talks were held between Chinese Vice Premier He Lifeng and top U.S. officials including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.
A Strategic Reset for Bilateral Economic Tie
The China-U.S. Trade Consultation Mechanism was created as a formalized channel to promote structured, ongoing discussions on trade and economic issues. The inaugural meeting focused on delivering on the “important consensus” reached by Presidents Xi Jinping and Donald Trump during a recent call on June 5, as well as commitments made at the Geneva Economic Forum.
During the two-day dialogue, both sides reaffirmed their intent to reduce tariffs. In addition, they expressed a shared goal to stabilize supply chains. They also aimed to expand bilateral cooperation in emerging technologies. Meanwhile, China emphasized its commitment to open dialogue. It also stressed the importance of fair trade. Furthermore, China highlighted its right to regulate key mineral exports, including rare earths, in accordance with international law.
Key Issues Addressed During the Meeting
The discussions within the China-U.S. Trade Consultation Mechanism touched on several high-priority topics:
- Export Controls: China clarified its regulatory stance on rare earth minerals, insisting policies are aligned with WTO rules.
- Tariff Commitments: The U.S. pledged to honor the Geneva 90-day tariff suspension, effective May 12.
- Intellectual Property: Both parties agreed to work on updated frameworks to manage IP disputes, including through smart contract pilots.
The talks were characterized as “professional, rational, and constructive” by both sides, with China reiterating its position: “Cooperation benefits both; confrontation harms all.”
Outlook: Can the China-U.S. Trade Consultation Mechanism Deliver?
Despite the absence of a specific roadmap for future meetings, officials indicated that regularized engagement will follow. China’s Ministry of Commerce stated that the mechanism will serve as a platform for resolving trade frictions and advancing mutual economic goals.
Observers from the UK Chamber of Commerce praised the talks. Observers from the EU Trade Mission also praised the talks. They called it a “welcome step for global economic stability.” They noted that the mechanism may help to avoid further decoupling. The decoupling refers to the two largest economies.
Conclusion
The launch of the China-U.S. Trade Consultation Mechanism demonstrates a renewed commitment by both nations to recalibrate their trade relationship through structured diplomacy. While immediate breakthroughs remain limited, the London talks laid a solid foundation for future negotiations rooted in professionalism and mutual respect.
