Talks between the U.S. and China extended later into their second day in London, as the world’s largest economies negotiate tech and industrial exports and deescalating their trade war.

The teams, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, were still holding discussions Tuesday night in order to iron out technical details, according to a Treasury official.

Members of the U.S. and Chinese delegations are working into the night at Lancaster House, a Georgian-era mansion near Buckingham Palace.

“We’re going to try to finish things, so that’s the objective,” U.S. Commerce Secretary Howard Lutnick told reporters. “I think we’re working on all sorts of trade issues and I think the talks are going really, really well.”

Asked if negotiations would conclude Tuesday, Lutnick said, “if they need be, we’ll be here tomorrow but I hope they end this evening.”

President Donald Trump told reporters at the White House on Monday that “we are doing well with China. China’s not easy,” adding that he was “only getting good reports” from that day’s nearly seven-hour session. Bessent said after Day 1 they had a “good meeting.”

The key issue this week is reestablishing terms of an agreement reached in Geneva last month, in which the U.S. understood that China would allow more rare earth shipments to reach American customers. The Trump administration accused Beijing of moving too slowly, which threatened shortages in domestic manufacturing sectors.

In return, the Trump administration is prepared to remove a recent spate of measures targeting chip design software, jet engine parts, chemicals and nuclear materials, people familiar with the matter said. Many of those actions were taken in the past few weeks as tensions flared between the U.S. and China.

“A U.S. decision to roll back some portion of the technology controls would very much be viewed as a win by China,” said Dexter Roberts, nonresident senior fellow at the Atlantic Council’s Global China Hub, adding that the possibility of unwinding “any controls” seemed “pretty much unthinkable” until recently.

A month ago Beijing and Washington agreed to a 90-day truce through mid-August in their crippling tariffs to allow time to resolve many of their trade disagreements — from tariffs to export controls.

Lancaster House carries historical significance. It has hosted major addresses by UK prime ministers, speeches by central bank governors and parties for Britain’s royal family.

At the same time, Trump’s trade team is scrambling to secure bilateral deals with India, Japan, South Korea and several other countries that are racing to do so before July 9, when the U.S. president’s so-called reciprocal tariffs rise from the current 10% baseline to much higher levels customized for each trading partner.

Meanwhile, Chinese President Xi Jinping on Tuesday held his first phone conversation with South Korea’s newly elected President Lee Jae-myung and called for cooperation to safeguard multilateralism and free trade.

“We should strengthen bilateral cooperation and multilateral coordination, jointly safeguard multilateralism and free trade, and ensure the stability and smoothness of global and regional industrial chains and supply chains,” Xi said, according to the CCTV report.