U.S. aims for swift action in collaborating with China on scarce resources of rare earths
In the wake of a conversation between President Trump and his Chinese counterpart, Xi Jinping, there's a buzz in the air about a potential swift agreement on rare earths between the US and China. According to the US entourage, the export embargo on rare earths might be eased today at the London meet. Negotiations are ongoing.
The US is aiming for a substantial accord on rare earths within the broader trade pacts with China. Larry Kudlow, director of the National Economic Council, hinted at a kind of handshake deal materializing in London, sealing agreements between Trump and Xi Jinping. "The aim of today's encounter is to ascertain their sincerity and, oh boy, shake on it!", Kudlow said to CNBC. It is anticipated that export restrictions will be relaxed, and a massive release of rare earths is expected post the handshake handoff. A brief meeting is foreseen.
Investors Cross Their Fingers
The diplomatic dance between the globe's two economic powerhouses started in the evening. Investors are eagerly awaiting further easing in the trade spat. Since Trump's return to the White House, the Republican has raised the stakes with successively higher tariffs against China, which Beijing has rebutted with immediate countermoves. However, a 90-day truce and scaled-down tariff rates were agreed upon in mid-May.
Global Supply Chains Disrupted
The US delegation in London is slated to include Treasury Secretary Steven Mnuchin, Trade Representative Robert Lighthizer, and Commerce Secretary Wilbur Ross. The Chinese delegation is being led by Vice Premier Liu He. US officials have frequently accused China of breaking its promises regarding the supply of rare earths. Trump recently declared that Xi had agreed in a call to reinitiate exports of minerals and magnets made from rare earths to the US.
China's decision in April to suspend exports of a wide array of critical minerals and magnets has caused a headache for automakers, aerospace companies, semiconductor firms, and defense contractors worldwide, disrupting global supply chains.
Struggling for Sovereignty
Concerns about China's dominance in the rare earths market have promoted the US to pursue options to decrease its dependence on China for these essential elements. Initiatives to bolster domestic production, recycling programs, and collaborations with countries like Australia and Canada to strengthen global supply chains are underway.
As of my last check-in, no concrete, widely recognized deal specifically on rare earths has been publicly announced between the US and China. However, broader trade tensions and dialogues continue, with both nations striving to tackle various trade and economic issues. Stay tuned to recent news updates or official announcements from both governments for the most up-to-date information.
- The US-China negotiations in London, concerning rare earths trade, may lead to a modification in the community policy and employment policy within the relevant sectors, as a significant accord is being pursued.
- Despite the ongoing proceedings in London, the politics surrounding US-China trade relations remain complex, with tensions in the general-news landscape extending beyond the rare earths negotiations and into various sectors, including sports.
