U.S.-China Trade Talks: Can Rare Earths Restore Economic Balance?
U.S. and Chinese officials resumed trade discussions in London, addressing export controls on rare earths crucial to various industries. Following a preliminary deal, fresh tensions arose as China's exports to the U.S. sharply declined. Trump and Xi recently communicated, seeking to stabilize these important economic relations.
In London, top U.S. and Chinese officials have resumed high-stakes trade talks aimed at resolving contentious issues surrounding export controls of rare earth materials. These discussions are crucial, as rare earths are vital for sectors such as autos, aerospace, and technology, and have raised global supply chain concerns.
The renewed negotiations come after a preliminary agreement was reached last month, initially offering relief but soon marred by accusations from Washington against Beijing for blocking critical exports. This economic standoff occurs amid a concerning plunge in China's exports to the U.S. and ongoing pressures on the U.S. dollar.
Leading the U.S. delegation is Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, alongside U.S. Trade Representative Jamieson Greer. The talks follow a phone call between President Trump and President Xi, marking their first direct communication in months, highlighting efforts to resume rare earth shipments to the U.S. amid prevailing tensions.
(With inputs from agencies.)
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