US-China Trade Tensions Ease with Tentative Rare Earths Deal
The US and China reached a preliminary agreement to resolve trade disputes and resume rare earth metal supplies. Following negotiations in London, the deal awaits final approval from both presidents. Beijing's recent exports ban had significant impacts on global industries, including automotive and semiconductor sectors.
In a significant development in international trade, President Donald Trump announced that a preliminary trade agreement with China has been reached. This comes after two days of intensive discussions held in London, aimed at resolving the enduring trade tensions between the two powerful economies.
The accord, which is still pending approval from both President Trump and President Xi Jinping, centers on the critical issue of rare earth metals. These metals are crucial for diverse industries, including mobile phones, semiconductors, and automotive production. China currently dominates global production at 61%, controlling 92% of the global output.
US Commerce Secretary Howard Lutnick, after the talks, acknowledged the breakthrough, stating that the agreement should ease restrictions on rare earth minerals crucial for multiple countries, including the US. However, the final details of what the US is conceding in the deal remain unspecified, raising questions about the mutual benefits each nation gains from the compromise.
(With inputs from agencies.)
Google News