Trump: Xi agreed on mineral flow - China retains rare earths

Trump: Xi agreed on mineral flow - China retains rare earths

The US President Donald Trump has announced that Chinese President Xi Jinping has agreed to resume the river of important rare earths. This announcement fell together with the upcoming new trade discussion between the USA and China, which will take place in London on Monday.

continuation of the trade talks

Trump commented, a day after he had held a long -awaited phone call with XI. During this conversation, the two leaders agreed to reopen the negotiations outstanding in Geneva due to mutual allegations of violations of the ceasefire outstanding last month.

export restrictions for rare earths

for Washington, China's export restriction is an important problem point. These materials are crucial for numerous industries, including the automotive and defense industry in the USA.

slow permits and the pressure on Beijing

In the weeks since the fragile accommodation, Washington Beijing has repeatedly accused of delaying the permits for the export of rare earths and not complying with the agreement made in Geneva. Trump has increasingly pushed to speak to his Chinese colleague to clear misunderstandings.

Details of the phone call

After a 90-minute conversation on Thursday, Trump said that he and XI had some points in relation to the rarer earths and magnets "clarified" and described the topic as "very complex". However, he did not give any exact details about the agreements.

Different readings of the agreements

When asked whether XI had agreed to restart the river less frequently, Trump answered this with "yes", but gave no further details about the speed or amount of the materials to be released. The Chinese reading of the call, on the other hand, did not mention rare earths, but quoted XI with the statement that China had "seriously and sincere" complied with the trade agreement.

Next steps in trade policy

experts in China who advised the government indicated on Thursday that Beijing was not willing to give up the powerful leverage that arises from its dominance in the area of rare earths. It could be tried to put pressure on Washington to loosen the US export controls that aim to block China's access to advanced US half-blades and technologies.

effects on the US economy

While American companies are expected to receive more approvals for exports in the next few weeks, the licensing system will probably remain, according to Wu Xinbo, director of the Center for American Studies at Fudan University in Shanghai. This could have a significant impact on companies that are dependent on these materials, since a survey by the American Chamber of Commerce in China showed that 75% of the companies concerned will no longer have stock within three months.

future negotiations and strategic considerations

Some Chinese scientists expressed hope that the US technology restrictions on China could now be on the negotiation. Trump announced that Minister of Commerce Howard Lutnick and other high -ranking representatives will take part in the upcoming talks. The strict licensing requirements have already disturbed the global supply chains for these materials and triggered unrest in numerous industries in the USA and Europe.