The talks, taking place amid the trade war started by President Donald Trump, are expected to center on U.S. export controls and China's rare-earths exports.

Chinese exports of rare earth minerals, which are vital to carmakers and other industries, and China's access to high-end technology from the U.S., including computer chips, are high on the agenda.

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One expert said he expected loosened controls on U.S. exports of semiconductors in exchange for China's releasing of more rare earths.

U.S.-China talks on trade have been “productive,” U.S. Treasury Secretary Scott Bessent said. After two full days of talks in London, Bessent said he was heading back to the U.S. for planned testimony to Congress on Wednesday.

The U.S. and China are holding a second day of talks in London aimed at easing their trade dispute. It comes after President Donald Trump said China is “not easy” but the U.S. was “doing well” at the negotiations.

Trade negotiations between the United States and China will continue on Tuesday in London, with both sides trying to preserve a fragile truce brokered last month.

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As U.S. and Chinese negotiators meet for trade talks, a primary concern for Washington will be whether Beijing eases the flow of rare earth materials.