China's CPEC To Be Extended Into Afghanistan
In today's episode of India Global, In a troubling new twist that threatens regional stability and sovereignty, China and Pakistan are now dragging Afghanistan into the controversial China-Pakistan Economic Corridor. It's a project long accused of being Beijing's neo-colonial Trojan horse. In Beijing this week, Chinese Foreign Minister Wang Yi and Pakistan's Deputy PM Ishaq Dar peddled economic promises to Afghanistan's Taliban regime, all under the guise of 'development.' Taliban's Foreign Minister Amir Khan Muttaqi emphasised the need for a comprehensive solution to the challenges faced by Afghan traders, particularly in exporting agricultural products and other goods.
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The Print
an hour ago
- The Print
Trump says ‘deal is done', China to remove curbs on exports of critical minerals to US
US Secretary of Commerce Howard Lutnick had earlier late Tuesday evening said that the two sides had agreed to put the 'meat on the bones' on the framework agreed to last month in Geneva to eventually reduce the reciprocal tariffs imposed by Washington DC and Beijing on one another. The deal will also allow Chinese students continued access to elite American universities, following threats from the Trump administration to curb their admissions. New Delhi: US President Donald Trump Wednesday said a 'deal' with China is done and relations between the two largest economies are 'excellent'. This deal will allow for the export of critical minerals from Beijing to Washington DC following two days of intense negotiations between their respective officials in London. The bilateral tariffs imposed on imports to the US from China crossed 100 percent on goods, following Trump's 'reciprocal tariffs' first announced on 2 April. The tit-for-tat trade war had led to both governments agreeing to a framework to reduce tariffs last month. Donald J. Trump Truth Social 06.11.25 08:04 AM EST — Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 11, 2025 However, China continued to impose curbs on the exports of critical minerals and technologies to the US, which led to Washington imposing its own curbs on exports of certain goods such as semiconductors to Beijing. The deal struck in London will see the withdrawal of these curbs in a 'balanced way' according to Lutnick. However, the details of the deal have yet to be made public. Minutes after his first statement, Trump in another post on the social media platform added: 'President XI and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!' The current round of talks in London came after Trump and the President of China Xi Jinping held a call last week. 'The two sides need to make good use of the economic and trade consultation mechanism already in place, and seek win-win results in the spirit of equality and respect for each other's concerns,' Xi is said to have told Trump during the call, according to the Chinese readout. The 90-minute call between the two leaders last week was the first between the two since Trump returned to the White House in January, reported The New York Times. 'The two sides reached principled agreement on implementing the important consensus reached by the two heads of state during their phone call on June 5 and the framework of measures to consolidate the outcomes of the economic and trade talks in Geneva, and made new progress in addressing each other's economic and trade concerns,' the Chinese readout of the talks in London said, as published by Xinhua. The US delegation consisted of Lutnick, US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent. China was represented by Vice Premier He Lifeng, who is in charge of economic policy. The deal, if agreed to by both leaders, could see some normalisation in the export of critical minerals from China to the US, which is a key part of the manufacturing of most modern technologies. After Trump's original tariffs on China touched 145 per cent a few months ago, Beijing instituted curbs on the exports of such goods, given its strong hold on the supply of critical minerals and magnets in the global market. The US in retaliation also highlighted a potential ban of Chinese students from studying at American universities. (Edited by Gitanjali Das) Also Read: Trump's flip-flop to China's aggression—What's bringing India and Australia closer
Time of India
2 hours ago
- Time of India
Amazon and Microsoft-backed startup to build Recycling Plant of rare earths in Canada, the 'rare minerals' that analysts say gives China upper hand in trade war with the US
Cyclic Materials , a startup supported by Amazon, Microsoft, and BMW Group, plans to invest $25 million in a rare-earths recycling plant and research center in Ontario, Canada, according to a statement reported by Bloomberg. The facility, set to begin operations in the first quarter of 2026, aims to bolster North America's supply of critical minerals amid rising global demand and China's dominance over rare-earth markets. Cyclic's technology extracts rare earths from end-of-life products like wind turbines, data-center hard drives, and electric vehicle components, addressing supply chain vulnerabilities highlighted by China's export restrictions in retaliation to U.S. tariffs, Bloomberg noted. The company already operates a demonstration facility in Kingston and a processing site in Arizona. What is the rare earth minerals tussle between US and China The rare earth minerals issue between the U.S. and China centers on a trade dispute over critical minerals essential for advanced technologies, including defense systems, electric vehicles, semiconductors, and renewable energy. China mines about 70% of the world's rare earth elements (17 metallic elements with unique properties) and processes over 90%, giving it significant control over global supply chains. They also produce 85% of rare earth magnets used in electric motors and other tech. 'Rare-earth elements are a $20 billion to $30 billion market globally, but they unlock multi-trillion-dollar industries,' Ahmad Ghahreman, CEO of Cyclic Materials, told Bloomberg. 'We are creating a secure, local supply for these critical metals.' The Kingston plant is designed to process 500 metric tons of feedstock annually, producing rare-earth oxides for magnets used in EV motors, wind turbines, and consumer electronics. Feedstock will be sourced from Cyclic's Arizona facility and a network of partners, with output supplied to companies like Solvay SA. The project aligns with Canada's push to become a hub for critical minerals, supported by government incentives and growing interest from automakers and tech giants. Cyclic's initiative could reduce reliance on Chinese rare earths, which account for over 80% of global supply, per Bloomberg. The research center will also develop advanced recycling techniques, positioning Cyclic to meet surging demand for sustainable mineral sources in industries critical to the green energy transition.
Indian Express
2 hours ago
- Indian Express
Trump says China trade deal ‘done': 55% tariff, supply of rare earth minerals
President Donald Trump said Wednesday that the United States has reached a trade agreement with China, including an easing of curbs imposed by Beijing on export of rare earth minerals and magnets that are key inputs for industries ranging from automobiles to electronics. 'Our deal with China is done, subject to final approval with President Xi and me,' Trump said in a post on Truth Social. He said China would supply 'any necessary rare earths' and magnets, while the US would make concessions on allowing Chinese students to attend American universities. The Trump administration had recently begun to clamp down on the presence of Chinese nationals on US college campuses. 'We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!' Trump wrote, without elaborating. Bloomberg quoted a White House official as saying that the agreement allows the US to charge a 55 per cent tariff on imported Chinese goods, which, crucially, includes a 10 per cent baseline 'reciprocal' tariff, a 20 per cent tariff for fentanyl trafficking, and a 25 per cent tariff reflecting pre-existing tariffs (imposed by Trump in his first term, that the Biden administration persisted with). China would charge a 10 per cent tariff on American imports, the official said. Though the details of the deal were still unclear, analysts predicted that China seems to have gained the upper-hand after its rare earth restrictions prompted US carmakers, including Ford Motor and Chrysler, to cut production. Significantly, Trump said a final deal is subject to approval from him and Chinese President Xi Jinping. Chinese state media said earlier Wednesday that Beijing had reached a 'framework' for an agreement with the US during talks in London, but there was no official response from China on Trump's subsequent claims on Truth Social. Earlier, both the negotiating sides said they had agreed in principle to a framework for dialling down trade tensions between the world's two biggest economies. After the meeting in London — the second time the two sides have met in the last couple of months, since Trump's sweeping tariff onslaught — there were indications of a reconciliation. What is beginning to get clearer after the second meeting is that this is perhaps not how the US imagined the trade war to unfold. China is beginning to dictate the direction of the bilateral talks, with the US almost seen as requesting for much-needed concessions on the resumption of supplies of critical inputs. In the first round of talks in Geneva, the US delegation led by Treasury Secretary Scott Bessent had asked the Chinese to cut its tariffs in tandem with theirs, primarily because the Americans were facing the heat back home from the early fallout of the high tariffs, including empty shelves at grocery stories and surging prices of daily use commodities. In London, the US side is learnt to have specifically asked the Chinese to 'suspend or remove' restrictions on rare earths magnets, which had forced a supply-chain crunch. The London meeting follows a call between Trump and Xi on June 5, which was initiated by the White House — the first call since Trump's reciprocal tariff announcement. After the London talks, US Commerce Secretary Howard Lutnick said the deal should result in restrictions on rare earth minerals and magnets 'being resolved'. 'We have reached a framework to implement the Geneva consensus… Once the Presidents approve it, we will then seek to implement it,' he said. 'The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5 and the consensus reached at the Geneva meeting,' the BBC quoted China's Vice Commerce Minister Li Chenggang as saying. Chinese export controls over rare earth minerals were high on the agenda of the meetings. While Beijing has not imposed an outright ban on the export of rare earth magnets, the process has been made very difficult; it could take a long time to source, posing shortage risks. Rare earth magnets, especially neodymium-iron-boron (NdFeB) magnets, are crucial for EV manufacturing. They provide the strong magnetic fields needed for efficient and powerful electric motors, including traction motors that drive EVs. These magnets also play a major role in other EV components like power steering systems, wiper motors and braking systems. China has a virtual stranglehold over these rare earth magnets. In May, talks held in Geneva led to a temporary truce after the tit-for-tat tariff increases by both sides, which led to duties that peaked at 145 per cent. Trump called the outcome of the talks in Switzerland a 'total reset', which brought US tariffs on Chinese products down to 30 per cent, while Beijing cut duties on US imports to 10 per cent. Both sides also agreed to a 90-day deadline to try to reach a trade deal. However, the US and China have since accused each other of breaching the deal. The US has said that Beijing has been dragging its feet on opening up exports of rare earth metals and magnets while the Chinese claim that Washington has restricted its access to American goods such as semiconductors and other related technologies linked to artificial intelligence. US Trade Representative Jamieson Greer had said China had failed to roll back restrictions on exports of rare earth magnets. In the run-up to this week's talks, the Chinese Ministry of Commerce said on Saturday that it had approved some applications for rare earth export licences. The problem for the US is that the Chinese side has wrested some advantage, especially by leveraging its strategy of weaponing its dominance in key sectors. Rare earth minerals and magnets is one such area, where the US is now desperate for concessions. Both sides have since claimed breaches on non-tariff pledges, but the Americans clearly seem more eager for a reconciliation, given the impact of the Chinese blockade on its key manufacturing sectors. These Chinese trade blockades are already impacting companies in other geographies. Hamamatsu-based small car maker Suzuki Motors, for instance, said last week it plans to suspend the production of its flagship Swift compact hatchback due to China's rare earth restrictions, becoming the first Japanese automaker to be impacted. There are similar worries among other manufacturing entities across the world, including in the US. Anil Sasi is National Business Editor with the Indian Express and writes on business and finance issues. He has worked with The Hindu Business Line and Business Standard and is an alumnus of Delhi University. ... Read More
