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United States Prepares Swift Action in Collaboration with China for Rare Earths Mining

Trump Discusses Matters with Xi

U.S. team led by Treasury Secretary Bessent and Trade Minister Lutnick dominates the U.S....
U.S. team led by Treasury Secretary Bessent and Trade Minister Lutnick dominates the U.S. delegation.

Scoop on the US-China Rare Earths Talks: What's the Buzz in London?

United States Prepares Swift Action in Collaboration with China for Rare Earths Mining

After a hotline chat between Donald Trump and Xi Jinping, the States is keeping fingers crossed for a swift agreement with China, particularly focusing on the rare earths trade. According to the States' delegation, there's a strong possibility of an announcement on the rare earths export in today's London meetings. Negotiations are still underway.

The States aims for a fundamental agreement with China on rare earths in the trade talks. White House economic advisor, Larry Kudlow, hinted at a handshake deal in London that could seal the deal between Trump and Xi Jinping. Kudlow explained to CNBC, "Today's confab is all about making sure they're sincere, and for good measure, some old-fashioned handshaking." American officials expect the controls on rare earths to be loosened, potentially triggering a surge of rare earths supplied post-handshake. A short meeting is expected.

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The finance titan meets between the two heavyweight economies started this afternoon. Wall Street folks are eager for more de-escalation in the trade shindig. Since Trump's return to the Oval Office, the Republicans have thrown increasingly hefty tariffs at China, met with instant retaliation from the Middle Kingdom. However, a 90-day truce and comparatively lighter tariff rates were agreed upon in mid-May.

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Guess who's eagerly awaiting the London get-together? Treasury Secretary Steven Mnuchin, Trade Representative Robert Lighthizer, and Commerce Secretary Wilbur Ross from the US delegation, and Vice Premier Liu He from the Chinese side. The US representatives have continuously accused China of failing to uphold its promises on the rare earths supply. Trump recently claimed in a phone call with Xi that the latter had agreed to resume rare earths supplies to the States.

China's move in April to put a halt on the export of a plethora of vital minerals and magnets has caused disruptions in the global supply chains of automakers, aerospace companies, semiconductor firms, and defense contractors.

Sources: ntv.de, mau/rts

Keywords:

  • China
  • US
  • Tariffs
  • Trade
  • Trade Conflicts
  • Trade Relations
  • Rare Earths
  • Donald Trump
  • Xi Jinping

Bonus Insights:

Rare Earth Elements (REEs) are essential components in high-tech electronics, renewable energy technologies, advanced ceramics, glass, and the auto industry. The States and other countries have been attempting to diversify their REE supply chains due to China's historical dominance in global REE production. Deals on REEs might involve supply agreements, efforts to develop alternative supply chains, and favorable regulatory environments. Keep a keen eye on trade news between the US and China for updates!

  1. The community policy on rare earths export could significantly impact the global high-tech industry, considering their essential role in electronics, renewable energy technologies, advanced ceramics, glass, and the auto industry.
  2. The science and technology sectors, along with industries like finance, business, education, and space-and-astronomy, may be heavily influenced by the outcome of the US-China negotiations on rare earths, as both economies strive towards creating a more favorable regulatory environment.
  3. Policies regarding employment in these sectors might be revised due to the anticipated surge in rare earths supply post any potential handshake deal between Trump and Xi Jinping, which could have a ripple effect across industries investing in technology and self-development.
  4. Politics played a pivotal role in the onset of tariff tussles between the US and China, and a resolution in their trade conflicts could open avenues for cooperation in other arenas, such as industry, finance, and general news.
  5. A swift agreement on the export of rare earths between the US and China could be the first promising step in a long line of policy changes that could significantly impact various employment policies in sectors ranging from science and technology to education and self-development.

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