US, China to resume trade talks with focus on rare earth exports
[WASHINGTON] Top trade negotiators from the US and China are set to hold fresh talks in London on Monday (Jun 9), offering a glimmer of hope that the world's two largest economies can defuse tensions over Chinese dominance in rare-earth minerals.
Both sides have accused the other of reneging on a deal in Geneva in May where they tried to start dialling back their trade war. Relations have spiralled since US President Donald Trump's return to the White House, stoking uncertainty for companies and investors.
China said on Saturday it approved some applications for rare-earth exports, without specifying which countries or industries were involved – after Trump said on Friday that Chinese President Xi Jinping had agreed to restart the flow of minerals and magnets using the materials.
'We want the rare earths, the magnets that are crucial for cell phones and everything else to flow just as they did before the beginning of April and we don't want any technical details slowing that down,' Kevin Hassett, head of the National Economic Council at the White House, said on Sunday on CBS's Face the Nation. 'And that's clear to them.'
US-China trade tensions escalated this year as a series of duty hikes on each other's goods sent tariffs well above 100 per cent before hitting a pause. While the Geneva deal was meant to pave the way for a broader de-escalation, subsequent talks quickly stalled amid mutual recriminations.
The US complained about a decline in shipments of rare-earth magnets essential for American electric vehicles and defence systems, while China bristled at tightened US restrictions on artificial intelligence chips from Huawei Technologies, access to other advanced technologies and crackdowns on foreign students in the US.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Trump's reprieve on US tariffs for Chinese goods runs out in August, unless he decides to extend it. If deals aren't reached, the White House has said Trump plans to restore tariff rates to the levels he first announced in April, or lower numbers that exceed the current 10 per cent baseline.
In London, US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer will meet a Chinese delegation led by Vice-Premier He Lifeng.
Trump offered a positive spin on what has been a rollercoaster relationship since he took office in January, saying on social media that the talks should go 'very well'.
While a call between Trump and Xi last week generated some hope on Wall Street for lower duties between the trading partners, investors' optimism was limited. While promising to reshape US trading relationships, the US president has reached only one new trade agreement – with the UK.
The Geneva meeting underscored the challenge of deal-making between China and the US.
'There was confusion and misunderstanding or misinterpretation intentionally on both sides, depending on how you look at it, about what was agreed to,' said Josh Lipsky, chair of international economics at the Atlantic Council.
'They left too many things open to interpretation and they all paid the price for it in the intervening weeks.'
After the two leaders spoke, the Chinese Foreign Ministry said Trump told Xi that Chinese students are welcome to study in the US. Trump later said it would be his 'honour' to welcome them.
For now, Xi appears to be betting that a reset in ties will lead to tangible wins in the weeks and months ahead, including tariff reductions, an easing of export controls and a less fraught tone.
The US and China 'just want to get back to where they were in Switzerland with a few more agreements down on paper to actually understand what is gonna be licensed, what gets permitted, what doesn't', Lipsky said. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
22 minutes ago
- Business Times
Gold falls on strong US jobs data and improved trade outlook
[BENGALURU] Gold prices fell on Monday (Jun 9) as a stronger-than-expected US jobs report cooled expectations of interest rate cuts from the Federal Reserve, while optimism over easing trade tensions between US-China weighed on the bullion's safe-haven demand. Spot gold fell 0.2 per cent to US$3,303.19 an ounce, as at 0056 GMT. US gold futures fell 0.7 per cent to US$3,323.40. Three of US President Donald Trump's top aides will meet with their Chinese counterparts in London on Monday for talks aimed at resolving the trade dispute between the two largest economies that has kept global markets on edge. The US economy added 139,000 jobs in May, surpassing analysts' expectations, while the unemployment rate was unchanged at 4.2 per cent, the Labor Department said. Wage growth also exceeded forecasts, dampening the likelihood of imminent rate cuts. Investors have scaled back bets on rate cuts, now anticipating one reduction in October. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump, meanwhile, said that a decision on the next Federal Reserve chair would be announced soon, adding that a 'good Fed chair' would lower interest rates. The US dollar index edged slightly up, making gold more expensive for overseas buyers. On the geopolitical front, Trump's order banning citizens of 12 countries from entering the US goes into effect on Monday. Russia stated on Sunday that its forces had advanced to the edge of Ukraine's Dnipropetrovsk region amid tensions over peace talks and the repatriation of soldiers' remains. Gold, often seen as a hedge against inflation and geopolitical uncertainty, could face pressure from higher interest rates, which reduce its appeal as a non-yielding asset. Elsewhere, spot silver remains unchanged at US$35.94 per ounce, platinum fell 0.5 per cent to US$1,163.10, while palladium was down 0.5 per cent to US$1,041.75. REUTERS
AsiaOne
an hour ago
- AsiaOne
California governor calls Trump National Guard deployment in LA unlawful, World News
LOS ANGELES — California National Guard troops arrived in Los Angeles on Sunday (June 7) to quell demonstrations over President Donald Trump's immigration enforcement, as the state's Democratic governor called their deployment unlawful. The National Guard began deploying as demonstrations over federal immigration raids continued for a third day in Los Angeles, culminating in confrontations between protesters and police. Los Angeles police declared one rally near City Hall to be an "unlawful assembly," alleging that some protesters threw concrete, bottles and other objects at police. "Arrests are being initiated," the department wrote in a post on social media. Demonstrators shouted "shame on you" at police and some appeared to throw objects, according to video. A group of protesters blocked the 101 Freeway, a major thoroughfare in downtown Los Angeles. California Governor Gavin Newsom said he requested the Trump administration withdraw its order to deploy 2,000 National Guard troops in Los Angeles County, calling it unlawful. Newsom accused Trump of trying to manufacture a crisis and violating California's state sovereignty. "These are the acts of a dictator, not a President," he wrote in a post on X. The White House disputed Newsom's characterisation, saying in a statement that "everyone saw the chaos, violence and lawlessness." Earlier, about a dozen National Guard members, along with Department of Homeland Security personnel, pushed back a group of demonstrators that amassed outside a federal building in downtown Los Angeles, video showed. Trump in a social media post on Sunday, called the demonstrators "violent, insurrectionist mobs" and said he was directing his cabinet officers "to take all such action necessary" to stop what he called "riots." Speaking to reporters in New Jersey, he threatened violence against demonstrators who spit on police or National Guard troops, saying "they spit, we hit." He did not cite any specific incidents. "If we see danger to our country and to our citizens, it will be very, very strong in terms of law and order," Trump said. National Guard troops were also seen in Paramount, in southeast Los Angeles, near the Home Depot, the site of altercations between protesters and police on Saturday. Law enforcement faced off with a few hundred protesters in Paramount and 100 in downtown Los Angeles on Saturday, with federal officers firing gas canisters in efforts to disperse crowds, according to Reuters witnesses. Authorities in Los Angeles arrested about 30 people on Saturday, including three on suspicion of assaulting an officer. The Los Angeles County Sheriff's Office said three deputies sustained minor injuries. The FBI offered a US$50,000 (S$64,420) reward for information on a suspect accused of throwing rocks at police vehicles in Paramount, injuring a federal officer. Despite Trump's rhetoric about the demonstrations, he has not invoked the Insurrection Act, an 1807 law that empowers a president to deploy the US military to suppress events like civil disorder. Asked on Sunday whether he was considering invoking the law, he replied "it depends on whether or not there's an insurrection." 'Zero tolerance' The protests pit Democratic-run Los Angeles, where census data suggests a significant part of the population is Hispanic and foreign-born, against Trump's Republican White House, which has made immigration enforcement measures a hallmark of his second term. Defence Secretary Pete Hegseth has warned that the Pentagon was prepared to mobilise active-duty troops "if violence continues" in Los Angeles, saying the Marines at nearby Camp Pendleton were "on high alert." Los Angeles Mayor Karen Bass said her city's law enforcement would have been able to handle the protesters, and blamed the Trump administration for inciting tensions by sending in the National Guard. "It's a feeling here of intentional chaos in a situation that had not broken out to violence short of a few people," Bass, a Democrat, said on CNN. Democratic Congresswoman Nanette Barragan, whose California district includes Paramount, also blamed the Trump administration. "It's only going to make things worse in a situation where people are already angry over immigration enforcement," Barragan told CNN's "State of the Union." Vanessa Cárdenas, the head of the immigration advocacy group America's Voice, accused the Trump administration of "trumping up an excuse to abuse power, and deliberately stoke and force confrontations around immigration." Homeland Security Secretary Kristi Noem told CBS' "Face the Nation" on Sunday that the National Guard would provide safety around buildings to people engaged in peaceful protest and to law enforcement. ICE operations in Los Angeles on Friday arrested at least 44 people on alleged immigration violations. The Department of Homeland Security on Sunday shared information about what it said were the criminal records of some of those arrested. Trump has pledged to deport record numbers of people in the country illegally and lock down the US-Mexico border, setting a goal for ICE to arrest at least 3,000 migrants per day. But the sweeping enforcement measures have also included people legally residing in the country, some with permanent residence, and has led to legal challenges. Mexican President Claudia Sheinbaum on Sunday criticised the US government over the immigration raids and deployment of the National Guard. "We do not agree with this way of addressing the immigration issue," Sheinbaum, who has sought to cultivate a positive relationship with Trump, said at a public event. "The phenomenon will not be addressed with raids or violence. It will be by sitting down and working on comprehensive reform." Trump's justification Trump's justification for the National Guard deployment cited a provision of Title 10 of the US Code on the Armed Forces. However, Title 10 also says the "orders for these purposes shall be issued through the governors of the States." It was not immediately clear if the president had the legal authority to deploy the National Guard troops without Newsom's order. Title 10 allows for National Guard deployment by the federal government if there is "a rebellion or danger of a rebellion against the authority of the Government of the United States." Those troops are only allowed to engage in limited activities and cannot undertake ordinary law enforcement activities. Trump's memo says the troops will "temporarily protect ICE and other United States Government personnel who are performing Federal functions, including the enforcement of Federal law, and to protect Federal property, at locations where protests against these functions are occurring or are likely to occur." [[nid:718855]]
Business Times
an hour ago
- Business Times
China says it may speed up rare earths application approvals from EU
[SHANGHAI] China is willing to accelerate the examination and approval of rare earth exports to European Union firms and will also deliver a verdict on its trade investigation of EU brandy imports by Jul 5, its commerce ministry said on Saturday (Jun 7). Price commitment consultations between China and the EU on Chinese-made electric vehicles (EVs) exported to the EU have also entered a final stage but efforts from both sides are still needed, according to a statement on the Chinese Commerce Ministry's website. The issues were discussed between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Paris on Tuesday, according to the statement. The comments mark progress on matters that have vexed China's relationship with the EU over the past year. Most recently, China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The ministry said China attached great importance to the EU's concerns and 'was willing to establish a green channel for qualified applications to speed up the approval process'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In a separate statement the commerce ministry issued later on Saturday, it said China was willing to further strengthen communication and dialogue with relevant countries on rare earth export controls as it recognised that demand from sectors such as robotics and EVs had risen. Brandy, EVs The ministry earlier said that Commerce Minister Wang during the meeting 'expressed the hope that the EU will meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China'. Chinese anti-dumping measures that applied duties of up to 39 per cent on imports of European brandy – with French cognac bearing the brunt – have also strained relations between Paris and Beijing. The brandy duties were enforced days after the EU took action against Chinese-made EV imports to shield its local industry, prompting France's President Emmanuel Macron to accuse Beijing of 'pure retaliation'. The Chinese duties have dented sales of brands including LVMH's Hennessy, Pernod Ricard's Martell and Remy Cointreau. Beijing was initially meant to make a final decision on the brandy duties by January, but extended the deadline to April and then again to Jul 5. China's Commerce Ministry said on Saturday that French companies and relevant associations had proactively submitted applications on price commitments for brandy to China and that Chinese investigators had reached an agreement with them on the core terms. Chinese authorities were now reviewing the complete text on those commitments and would issue a final announcement before Jul 5, it said. In April, the European Commission said the EU and China had also agreed to look into setting minimum prices of Chinese-made EVs instead of tariffs imposed by the EU last year. China's commerce ministry said the EU had also proposed exploring 'new technical paths' relating to EVs, which the Chinese side was now evaluating. REUTERS
