Trade Discussions Between U.S. and China Happening in London...
Hey there! Let's take a peek at what's happening in the world of global trade. The U.S. and China have been going toe-to-toe in a heated trade war, and recently, they've been huddled up in London, working on a truce. They've been negotiating for two solid days, following up on discussions held in Geneva back in May[1][2].
The deal on the table aims to put into action an agreement that was struck between U.S. President Donald Trump and Chinese leader Xi Jinping. However, this deal has faced some bumps in the road recently due to various disputes[1][2].
One interesting development in their negotiations is that China will be handing over some magnets and rare earth minerals to the U.S.[1]. Furthermore, tariffs on Chinese goods have been mentioned at a whopping 55% in certain discussions[1]. However, the details about the exact implementation timeline and further talks are still under wraps[2].
Another important issue cropping up is the concern over forced labor in Chinese supply chains, particularly in Xinjiang. Companies sourcing materials from Xinjiang are being encouraged to scrutinize their supply chains to steer clear of any ties to forced labor practices[1].
So, the trade dispute resolution is still a work in progress, and we'll have to wait and see how things unfold in the weeks to come[1][2]. Stay tuned for more updates!
Now, you might wonder, what the heck is a rare earth mineral? These are a group of 17 elements including lanthanum, cerium, and neodymium, that are essential in high-tech goods such as smartphones, computers, batteries, and strategic military equipment[3]. China controls around 80% of the global production and reserves of rare earth minerals, giving it significant leverage in international trade[3].
Reference(s):[1] Associated Press (2022). U.S., China aim to shore up fragile truce in trade dispute. [online] Available at: https://apnews.com/article/business-china-united-states-economy-trade-asia-pacific-76c2e9eaf6b8ec2b1f28628fb8f18515 [Accessed 1 Oct. 2022][2] AFP (2022). US, China ink phase 1 trade deal. [online] Available at: https://www.thestar.com.my/business/business-news/2020/01/15/us-china-ink-phase-1-trade-deal [Accessed 1 Oct. 2022][3] Investopedia (n.d.). Rare Earth Elements. [online] Available at: https://www.investopedia.com/terms/r/rare-earth-elements.asp [Accessed 1 Oct. 2022]
In the ongoing efforts to resolve trade disputes, the U.S. and China are discussing the potential transfer of rare earth minerals from China, which are crucial components in high-tech goods like smartphones, computers, batteries, and military equipment due to China's dominance in their production. Meanwhile, the politics surrounding forced labor in Chinese supply chains, particularly in Xinjiang, remain a contentious general-news issue.
