US-China Trade Talks "Going Well" On Second Day, Lutnick Says

US-China trade talks are underway in London, aiming to strengthen the fragile truce between the world's two largest economies. Commerce Secretary Howard Lutnick said the talks are "going well" and expected another full day of discussions. Markets are on edge as the two nations try to agree on exports of key tech and industrial goods and avoid escalating their trade war. The Bloomberg Dollar Spot Index has fallen sharply this year, undermining confidence in US assets. The US and China are discussing export controls, with the US seeking to allow more rare earth shipments to reach American customers. In return, the US is prepared to ease China's access to semiconductors and other goods. The two nations agreed to a 90-day truce last month to resolve their trade disagreements. Meanwhile, the US is also seeking bilateral deals with India, Japan, South Korea, and others before July 9, when the US president's reciprocal tariffs rise. Chinese President Xi Jinping also held a phone conversation with South Korea's newly elected President Lee Jae-myung, calling for cooperation to safeguard multilateralism and free trade. The outcome of these talks will have significant implications for global trade and the economy.