London's Trade Talks: China Wields Rare Earths as a Weapon
Beijing Leverages Rare Earths for Pressure Tactics Against Adversaries
Wanna know what's cookin' in London? US and China are still chatin' it up to sort out their trade beef, with rare earths and trade restrictions on the menu. But analysts ain't holdin' their breath for a quick resolution.
The US Treasury Secretary and Trade Rep are hobnobbin' with China's bigwigs, including the Vice Premier and Commerce Minister, to end the trade spat between the world's two economic giants. The two sides met in London last Monday, with hopes of bringin' peace to the global economy.
So, what's the word? No news yet on the outcome of the talks. Trump's economic advisor, Kevin Hassett, told CNBC he's expectin' a friendly handshake, but no fireworks. Trump himself said the US is doin' just fine with China, but we gotta wait for the real deets.
Main Course: Trade Restrictions
A deal could be the light at the end of the tunnel for the global economy, which has been shakin' from Trump's tariffs and the ups and downs of US-China trade. But analysts warn we gotta see some concrete actions before we can breathe easy. "The market seems to be acceptin' Trump's words and the comments from Lutnick and Bessent, but we're still waitin' for solid news," said an analyst from IG.
Rare Earths: The Secret Ingredient
China produces around 90% of the world's rare earths, which are crucial for vehicle production, particularly electric vehicle motors. And China ain't playin' fair: they've been usin' their control over these precious elements as a weapon in the trade war. They've been restrictin' exports, creatin' havoc for automakers, aerospace companies, semiconductor firms, and defense contractors worldwide.
No Urgency for a Deal?
China may not be in a hurry to make a deal, according to some economists. They point to shipping activities that have remained steady, suggestin' China's economy is holdin' its own. But, hey, a compromise deal could still happen, according to some experts. "I believe we'll see a deal, at least a deal," said a chief economist at Spartan. "That'd help ease the uncertainties about tariffs."
Source: ntv.de, jki/dpa/rts/DJ
- China
- USA
- Trade disputes
- Rare earths
- London
Enrichment Data:
The current situation regarding China’s rare earth export controls in relation to the US-China trade negotiations is as follows:
- Recent Agreement: As of June 11, 2025, US and Chinese officials have reached a new trade framework following two days of negotiations in London. President Trump announced that the agreement includes China resuming exports of rare earth elements and magnets to the US, after imposing restrictions for two months, causing significant disruptions in US industries such as automotive, robotics, and defense[1].
- Background: China had enacted export controls on seven rare earth elements in April 2025, citing national security and nonproliferation concerns. This policy required special licenses for such exports and created major supply chain disruptions for US manufacturers[1][2].
- Ongoing Concerns: Despite the new agreement, the reliability of rare earth access remains uncertain, as previous agreements have faced bureaucratic delays in granting export licenses, potentially allowing China to exert continued leverage during negotiations[1].
In summary, as of June 11, 2025, the US and China have agreed to resume rare earth exports, but the long-term stability of this arrangement remains uncertain[1][2].
- The recent trade agreement between the US and China, following negotiations in London, includes China resuming exports of rare earth elements and magnets to the US, which had been restricted for two months, causing disruptions in various industries such as automotive, robotics, and defense.
- The enactment of export controls on seven rare earth elements by China in April 2025, citing national security and nonproliferation concerns, required special licenses for such exports and led to major supply chain disruptions for US manufacturers. Despite the new agreement, ongoing concerns exist about the reliability of rare earth access, as previous agreements have faced bureaucratic delays in granting export licenses, potentially allowing China to exert continued leverage during negotiations.
