Let's Hope for a Swift Deal on Rare Earths Between US and China, According to Trump's Team
United States endeavors to expedite mining collaborations with China in relation to scarcely accessible rare earth elements
Following a chat between Old Man Trump and Xi Jinping over the phone, the Yanks are keen on sealing a speedy agreement with Beijing. The White House crew suggests the export ban on rare earths will be lifted in London today, all thanks to the ongoing talks.
The USA is eyeing a major accord about the rare earth sector during its trade squabbles with China. It seems they'll settle on an informal pact in the British capital, according to Larry Kudlow, the dude in charge of the National Economic Council. This'll solidify the deals between Trump and his Chinese counterpart, Xi Jinping. "The idea behind today's gathering is to confirm they're legit, but also to actually shake hands," Kudlow spilled to CNBC. Apparently, export controls will lighten up, and rare earths will start flowing like beer at a frat party, post handshake session. A quick meet is on the cards.
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Convos between the world's heftiest economies kicked off late in the evening. Folks are wishing for a de-escalation in the trade war. Ever since Trump returned to the White House, the GOP leader has escalated tariffs against China, which China swiftly retaliated. However, a 90-day truce and lower tariff rates were agreed in mid-May.
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The US delegation in London will likely consist of Steven Mnuchin, Wilbur Ross, and Robert Lighthizer from the US side. The Chinese team will be led by Vice Premier Liu He. The Yanks have repeatedly blamed China for not keeping its word on the rare earth supply. Trump recently mentioned that Xi was cool with resuming shipments of those rare-as-getting-a-unicorn minerals and magnets to the US.
China's decision in April to cease exports of a series of critical minerals and magnets has wreaked havoc on global supply chains of auto manufacturers, aerospace companies, chip makers, and defensecontractors.
- China
- USA
- Trade Wars
- Trade Disputes
- Trade Agreements
- Rare Earths
- Donald Trump
- Xi Jinping
Background on Rare Earths
- Rare earth elements form the backbone of high-tech applications like electronics, renewable energy technologies, and military gadgets.
- China controls approximately 60% of global rare earth production, with the States heavily reliant on imports from China, causing supply chain security concerns.
Potential Meeting Details
Objectives
- Diversification of Supply Chains: The US may seek to minimize its dependence on China by exploring alternative sources or partnerships.
- Trade Agreements: Negotiations could cover securing favorable and stable terms for rare earth trades between the nations.
Key Issues
- Market Access: The US may push for improved market access to Chinese rare earths, potentially landing more favorable pricing or supply agreements.
- Collaboration and Investment: There might be discussions about shared ventures or investments in rare earth mining and processing facilities outside China.
Potential Outcomes
- Quick Accords: Speedy agreements could focus on quick supply needs, ensuring a steady supply of rare earths to bolster US industries.
- Long-term Strategy: Both countries could explore long-term collaborations that might encompass joint research and development in rare earth technology.
- In the context of trade talks, both the USA and China may draft employment policies to support rare earth industries, as the two nations aim to diversify supply chains.
- If an agreement is reached, the flow of rare earths between the USA and China could be compared to a bustling employment market, where resources are shared and exchanged efficiently.
