After Trump-Xi call, U.S.-China trade talks to resume in London

Rare earth export curbs remain a sticking point as global automakers and diplomats push for supply chain stability

Welcome back to What’s Happening in China, your weekly China brief.

After reports last week that the trade truce was “at risk of falling apart,” and Treasury Secretary Scott Bessent saying the situation required “both leaders to weigh in,” a call between Trump and Xi on Thursday appears to have eased tensions.

“I just concluded a very good phone call with President Xi,” Trump announced on Truth Social. “The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries. There should no longer be any questions respecting the complexity of Rare Earth products,” he added.

The PRC’s export curbs on rare earths have been a key sticking point in the negotiations. By weaponising its near-monopoly on rare earths, Beijing risks disrupting supply chains across multiple industries—not just in the U.S.

On Tuesday, Reuters reported that “Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing off…