By Kate Holton, Andrea Shalal and Alistair Smout LONDON (Reuters) -U.S.-China trade talks were set to extend to a second day in London as top economic officials from the world's two largest economies sought to defuse a bitter dispute that has widened from tariffs to restrictions over rare earths,

A Chinese delegation led by Vice Premier He Lifeng held talks with U.S. Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer at Lancaster House, an ornate 200-year-old mansion near Buckingham Palace.

A new round of talks aimed at resolving a trade war between the US and China is set take place in London on Monday. US President Donald Trump announced on Friday that a senior US delegation would meet Chinese representatives. Over weekend, Beijing's Ministry of Foreign Affairs confirmed that Vice Premier He Lifeng will attend the talks.