Trump and Xi reach accord on resumption of student visas and rare earth exports exchange.
The United States and China Hint at a Shift Regarding Visas and Rare Earth Minerals
During a telephone conversation on Thursday, leaders from the U.S. and China suggested a change of course with the unfreezing of visas for Chinese students in the U.S. and the potential resumption of Chinese exports of rare earth minerals.
According to a statement released by China's Ministry of Foreign Affairs, U.S. President Donald Trump expressed that the U.S. "digs Chinese scholars," effectively signaling the end of the recent visa restrictions imposed. China viewed these measures as discriminatory and a breach of the temporary trade agreement agreed upon in Geneva last month.
Trump also hinted at Xi Jinping's promise to restart the exports of rare earth minerals, although this point was missing in the official statement from Chinese authorities.
In the statement, Xi articulated, "The Chinese generally stand by their word and transform pledges into actions. When a consensus is struck, both parties must abide by it. The U.S. should admit the progress made and revoke the unfavorable decisions enacted against China."
China Levels Accusations of Violations
Earlier this week, Chinese Foreign Minister Wang Yi accused Washington of contravening the agreement during a meeting with the U.S. ambassador in Beijing.
Wang highlighted the restrictive visa policies for Chinese students and the constraints on semiconductor and software sales vital for tech advancements as substantial hurdles in high-tech production. This aspect was neither addressed nor acknowledged by either party in the conversation.
The agreement that transpired in Geneva allowed for the temporary postponement of the 125% tariffs imposed by Beijing on U.S. imports and the 145% tariffs levied by the U.S. on Chinese goods. Both leaders agreed to schedule further negotiations between the two countries.
Trump revealed that his delegation would consist of Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer. The setting and date for the meeting have yet to be determined.
Trump also divulged that Xi extended an invitation, along with First Lady Melania Trump, to visit China - an invitation that was reciprocated by Trump.
Record Low Imports
The discourse between the two leaders ensued following data that suggested a significant decrease in the U.S. trade deficit in April, reaching a record low since 2023.
Trade figures indicate a historic drop of 16.3% in imports, largely due to a steep decline in purchases from China, while exports experienced a 3% increase, leading to the reduction in the deficit.
Imports from China plummeted to $25.4 billion (€21.5 billion), the lowest level since March 2020, when the pandemic disrupted the worldwide trade market. Exports to China also fell, reaching $8.2 billion (€7.1 billion), marking the lowest point in more than four years.
- The shift in visa policies between the United States and China, as hinted by the leaders during their conversation, falls under the category of 'policy-and-legislation'.
- The ongoing adjustments in the relationship between the U.S. and China, including the potential resumption of Chinese exports of rare earth minerals, can be considered a part of 'general-news' and 'politics'.
