New Disputes Emerge Ahead Of U.S.-China Trade Talks In London

Fresh tensions threaten to derail U.S.-China trade talks in London as the fragile 90-day truce on tariffs agreed last month in Geneva comes under pressure, Ken Moritsugu reported for the Associated Press (AP).

The latest tensions flared just one day after the Geneva agreement.

While the tariff pause was initially seen as a breakthrough, friction has resurfaced over key tech and security issues. Disputes over AI-enabling semiconductors, rare earth exports, and student visas have all re-emerged, stoking tensions between the world’s two largest economies.

President Donald Trump and Chinese President Xi Jinping spoke by phone in a bid to stabilize relations. Trump later announced on social media that the next round of talks would be held in London.

One flashpoint is China’s dominance in rare earth elements — critical to the production of electronics, electric vehicles, and defense systems.

“China’s control over rare earth supply has become a calibrated yet assertive tool for strategic influence,” Morgan Stanley’s Chief China Economist Robin Xing wrote in a research note. “Its near-monopoly of the supply chain means rare earths will remain a significant bargaining chip in trade negotiations.”

The latest tensions flared just one day after the Geneva agreement.

On May 13, the U.S. Commerce Department issued guidance warning that Huawei's Ascend AI chips may violate U.S. export controls, since the chips were likely developed with American technology.

China reacted angrily, with a Commerce Ministry spokesperson calling on the U.S. to “immediately correct its erroneous practices.”