Commercial dispute: USA and China approach a surprising result!

Commercial dispute: USA and China approach a surprising result!

London, Vereinigtes Königreich - On June 11, 2025, China and the United States achieved a preliminary result during trade talks in London. The conversations that took place on neutral soil and took two days led to a framework to realize a consensus that was already initiated on June 5 in a phone call between the presidents of both countries, Donald Trump and XI Jinping. The negotiators, Li Chengang from China and US trade minister Howard Lutnick, confirmed the agreement, but the details of which are still unknown. The result is now presented to the President of both nations, with the final decision lying in their hands.

Li described the negotiations as "professional", "honest" and "reasonable". There is hope that these progress can strengthen trust between the two countries and avert a further escalation in the trade conflict. There is currently a 90-day break in the customs dispute, which has been in the case since mid-May, and in Geneva the countries agreed to significantly reduce the tariffs to imports. In London, the focus of the negotiations was on export restrictions. Merku also reports that China limited the export of rare earth in April, while the USA limits the sale of chip design software and aircraft components to China have.

correlation between customs dispute and foreign trade

The trade talks here are in the context of a significant decline in China's exports to the USA. In May 2025, these fell by $ 28.8 billion by $ 28.8 billion compared to $ 33 billion in April. Compared to the same month last year, the decline was even 34.5 percent. Imports from the USA to China also decreased by 18.1 percent. The time reports that China's foreign trade still had a growth of 4.8 percent, the surplus increase to $ 103.2 billion.

Although Chinese exports rose in March and April, they are now under pressure, which is also due to the ongoing customs conflicts. It is particularly interesting that in April high tariffs from 145 percent of Chinese goods in the United States came into force and China in turn increased tariffs to US imports to 125 percent. Economists warn that the still existing high tariffs could negatively influence trade figures in the future.

economic effects and future prospects

China's economy suffers from a weak internal demand, which is primarily influenced by the real estate crisis. While consumer prices sank by 0.1 percent compared to the previous year in May, it can still be seen that demand from other Asian countries such as Vietnam and Thailand also supports China's exports. In April, the exports of China to the Asean countries rose by $ 20.8 percent to over $ 60 billion. Tagesschau explains that china planning such as interest rates and To introduce loans in certain sectors to boost domestic demand.

In the middle of these turbulent trade conditions, both China and the USA hope to be able to head for a more constructive relationship through the current dialogue. It remains to be seen whether the desired negotiations in Geneva will lead to further progress. The path to a stable trading environment is long and prepares great challenges for both nations.