The meeting in London follows a conversation between leaders Donald Trump and Xi Jinping last week – an attempt to get the stalled trade negotiations going after the agreement in Geneva in May to temporarily lower the high tariffs between the countries for 90 days.
The focus is on the restricted trade flow of advanced US technology to China and important Chinese raw materials to the US, according to news agency Bloomberg. This includes China's export of rare earth metals – important raw materials for US electric cars and defense equipment – and the US's export restrictions on advanced technical equipment to China – such as AI chips and jet engines.
Deadline expires in August
The atmosphere between the countries has also been negatively affected by new visa rules for Chinese students in the US.
The deadline from the Geneva meeting in May expires in August.
Before Monday's meeting in London, the Trump administration has accused China of breaking the conditions of the agreement from Geneva. China has in turn accused the US of worsening the situation with new restrictions.
But Donald Trump has tried to instill hopes that the issues can be solved. He has described the negotiations with China as "very far along" and the latest direct conversation he had with Xi Jinping about the issues as "very good", according to Bloomberg.
The economic advisor to the White House, Kevin Hassett, has said before the meeting that China's export of critical minerals has increased in recent times, but not to the level that was spiking in Geneva in May.
On the market, hopes of a breakthrough in the talks between China and the US have increased before the meeting. This has led to increased demand for Chinese stocks on the Hong Kong stock exchange during the night to Monday.
Low expectations
But expectations among analysts in London are low among many analysts, as the issues that the countries are dealing with are complex.
"This time there is no low-hanging fruit", writes Bloomberg's analysts Adam Farrar and Michael Deng in a comment before the meeting.
The US Secretary of the Treasury, Scott Bessent, leads the Trump administration in the negotiations, but has brought along the trade minister Howard Lutnick and the US trade representative Jamieson Greer.
China's delegation in London is led by Vice Premier He Lifeng, who is close to Xi Jinping.
