Hopeful US-China Rare Earths Deal on the Horizon: London Summit Afoot
U.S. pursuing accelerated cooperation with China in the extraction of scarce minerals
In an eager development post Trump's phone chat with Xi, the US is working hard to secure a swift deal with China over rare earths exports. The US delegation confidently anticipates a resolution today in London, with the rare earth market reopening its doors. Negotiations are in full swing.
The US aims to reach a fundamental accord on rare earths amid the US-China trade talks. Larry Kudlow, the director of the National Economic Council, expressed hopes for a "handshake deal" during the London negotiations. Thinking of the negotiations as a chance to confirm both sides' commitment and seal deals made by Trump and Xi, he stated, "The goal of today is to verify their determination and to make them shake hands." It is anticipated that export regulations will be loosened and the rare earth market will experience a surge post the handshake. A quick meeting is expected.
Political Insights
Trade disputes between the world's two largest economies are back in the spotlight. Politicians and investors alike are eager for de-escalation. Since Trump's return to the White House, he has repeatedly increased tariffs against China, resulting in immediate countermeasures from Beijing. However, a 90-day ceasefire and significantly reduced tariff rates were agreed upon in mid-May.
Economic Impact
The London summit will bear participation from US Secretary of the Treasury, Steven Mnuchin, US Trade Representative, Robert Lighthizer, and Commerce Secretary, Wilbur Ross. Leading the Chinese delegation will be Vice Premier, Liu He. The US government representatives have voiced their concerns regarding China's failure to adhere to its promises on the supply of rare earths. Trump recently revealed that Xi had agreed to resume the supply of rare earth minerals and magnets to the US during a phone conversation.
China's April decision to halt the export of a variety of essential minerals and magnets resulted in disruptions to global supply chains. Automakers, aerospace companies, semiconductor firms, and defense contractors worldwide have felt the aftereffects.
Global Supply Chains on the Ropes
Source: ntv.de, mau/rts
- China
- USA
- Tariffs
- Trade
- Trade Disputes
- Trade Relations
- Rare Earths
- Donald Trump
- Xi Jinping
- The political implication of the US-China rare earths negotiations is significant, as both economies strive for a resolution that could potentially ease ongoing trade disputes and positively impact global supply chains, particularly in sectors like automobile, aerospace, semiconductor, and defense industries.
- Amid the General-News of the ongoing trade talks between the US and China, the Community policy and Employment policy discussions surrounding rare earths exports have gained prominence, particularly with the upcoming London Summit, where both parties aim to reach a handshake deal and reopen the market.
