China returns to trade talks with the U.S. holding, from its view, a strong hand: Its economy is bearing up better than expected. And it has an ace card: rare earths.

If a handshake agreement holds, it will merely undo some of the damage from the trade war that President Trump started.

The U.S. and China are extending trade talks in London aiming for a breakthrough in export control disputes. U.S. Treasury Secretary Scott Bessent and other key officials are working to resolve tensions over tariffs and rare earths,