US, China Talks Make "Substantial Progress" toward Defusing Trade War
Taarek Refaat
US Treasury Secretary Scott Besant said on Sunday that talks in Geneva between the US and Chinese Vice Premier He Lifeng had made "substantial progress" toward defusing the trade war between the world's two largest economies.
Besant added that he would provide more details on Monday, while US Trade Representative Jameson Greer, who also attended the talks, said that the differences between the two sides were not as significant as previously thought.
"I am pleased to report that we have made substantive progress between the United States and China in these very important trade talks," Besant told reporters.
He added that he had informed President Donald Trump of the progress made in the talks and that a full briefing on the details would be issued on Monday.
The talks continued for a second day on Sunday, as the two sides discussed how to de-escalate the trade war, which threatens to significantly damage the global economy.
US Trade Representative Jameson Greer said, "The talks were very constructive. It is important to recognize how quickly we reached an agreement, which reflects that the differences may not have been as significant as we had thought."
He added, "However, we have made great efforts over these two days. Just remember the reason we are here in the first place: the United States has a massive trade deficit of $1.2 trillion. That is why the President declared a national emergency and imposed tariffs. We are confident that the agreement we have reached with our Chinese partners will help us work toward resolving this national emergency."
On his part, the Vice Chairman of the Chinese International Council confirmed that the trade talks with the United States were constructive and had made progress.
He said, "China's position on the trade war is clear and consistent." He noted that an agreement was reached to establish a consultation mechanism on trade and economic issues. He stressed that "we will work to enhance certainty and stability in the global economy."
In an effort to defuse the trade war that threatens to severely damage the global economy, senior officials from the United States and China met again in Geneva on Sunday to resume talks that began on Saturday.
Senior U.S. and Chinese officials concluded the first day of talks in Geneva aimed at defusing a trade war that threatens to deal a severe blow to the global economy.
Chinese Vice Premier He Lifeng held a nearly eight-hour meeting with US Treasury Secretary Scott Besant and US Trade Representative Jameson Greer, the first face-to-face meeting between the two sides since the world's two largest economies imposed tariffs exceeding 100% on each other's imports, according to Reuters.
Besant and Greer met with He in Geneva after weeks of escalating tensions following President Trump's February tariffs, which Beijing responded with retaliatory measures, bringing annual bilateral trade of nearly $600 billion to a near standstill.
This trade standoff, along with Trump's decision last month to impose tariffs on dozens of other countries, has disrupted supply chains, rattled financial markets, and increased fears of a severe global economic recession.
Beijing, for its part, rejects what it sees as foreign interference and demands that Washington lower tariffs, clarify which goods it wants China to purchase in greater quantities, and be treated as an equal on the international stage.
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Egypt Independent
5 hours ago
- Egypt Independent
China has a valuable card to play as it holds trade talks with the US today
Hong Kong CNN — A new round of trade negotiations between the United States and China has started in London, with both sides trying to preserve a fragile truce brokered last month. The fresh talks were announced last week after a long-anticipated phone call between US President Donald Trump and Chinese leader Xi Jinping, which appeared to ease tensions that erupted over the past month following a surprise agreement in Geneva. In May, the two sides agreed to drastically roll back tariffs on each other's goods for an initial 90-day period. The mood was upbeat. However, sentiment soured quickly over two major sticking points: China's control over so-called rare earths minerals and its access to semiconductor technology originating from the US. Beijing's exports of rare earths and their related magnets are expected to take center stage Monday at the London meeting. A person familiar with the matter told CNN the US-China talks were underway. China's official news agency Xinhua also reported the start of the discussions. Experts say Beijing is unlikely to give up its strategic grip over the essential minerals, which are needed in a wide range of electronics, vehicles and defense systems. 'China's control over rare earth supply has become a calibrated yet assertive tool for strategic influence,' Robin Xing, Morgan Stanley's chief China economist, wrote in a Monday research note. 'Its near-monopoly of the supply chain means rare earths will remain a significant bargaining chip in trade negotiations.' Since the talks in Geneva, Trump has accused Beijing of effectively blocking the export of rare earths, announcing additional chip curbs and threatening to revoke the US visas of Chinese students. The moves have provoked backlash from China, which views Washington's decisions as reneging on its trade promises. All eyes will be on whether both sides can come to a consensus in London on issues of fundamental importance. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will meet a Chinese delegation led by Vice Premier He Lifeng. On Saturday, Beijing appeared to send conciliatory signals. A spokesperson for China's Commerce Ministry, which oversees the export controls, said it had 'approved a certain number of compliant applications.' 'China is willing to further enhance communication and dialogue with relevant countries regarding export controls to facilitate compliant trade,' the spokesperson said. Kevin Hassett, head of the National Economic Council at the White House, told CBS's Face the Nation on Sunday that the US side would be looking to restore the flow of rare earth minerals. 'Those exports of critical minerals have been getting released at a rate that is higher than it was, but not as high as we believe we agreed to in Geneva,' he said, adding that he is 'very comfortable' with a trade deal being made after the talks. On Monday morning in an interview with CNBC, Hassett said: 'This was a very significant sticking point, because China controls… something like 90 percent of the rare earths and the magnets. And if they're slow rolling, sending those to us because of some licensing deal that they set up, then it could potentially disrupt production for some US companies that rely on those things.' 'And there are enough of those, like, for example, auto companies, that President Trump took it very seriously, called President Xi and said, we got to we got to get this stuff coming out faster. And President Xi agreed,' he added. A valuable card to play In April, as tit-for-tat trade tension between the two countries escalated, China imposed a new licensing regime on seven rare earth minerals and several magnets, requiring exporters to seek approvals for each shipment and submit documentation to verify the intended end use of these materials. Following the trade truce negotiated in Geneva, the Trump administration expected China to lift restrictions on those minerals. But Beijing's apparent slow-walking of approvals triggered deep frustration within the White House, CNN reported last month. Rare earths are a group of 17 elements that are more abundant than gold and can be found in many countries, including the US. But they're difficult, costly and environmentally polluting to extract and process. China controls 90 percent of global rare earth processing. Experts say it's possible that Beijing may seek to use its leverage over rare earths to get Washington to ease its own export controls aimed at blocking China's access to advanced US semiconductors and related technologies. The American Chamber of Commerce in China said on Friday that some Chinese suppliers of American companies have received six-month export licenses. Reuters also reported that suppliers of major American carmakers – including General Motors, Ford and Jeep-maker Stellantis – were granted temporary export licenses for a period of up to six months. While China may step up the pace of license approvals to cool the diplomatic temperature, global access to Chinese rare earth minerals will likely remain more restricted than it was before April, according to a Friday research note by Leah Fahy, a China economist and other experts at Capital Economics, a London-based consultancy. 'Beijing had become more assertive in its use of export controls as tools to protect and cement its global position in strategic sectors, even before Trump hiked China tariffs this year,' the note said. China's economic woes As China tackles a tariff war with the US head on, it's clear that the disruptions are continuing to cause economic pain at home. Trade and price data released Monday painted a gloomy picture for the country's export-reliant economy. Aerial view of shipping containers sitting stacked at Shanghai Port on Monday in Shanghai, China. Long Wei/VCG/Getty Images Its overall overseas shipments rose by just 4.8 percent in May, compared to the same month a year earlier, according to data released by China's General Administration of Customs. It was a sharp slowdown from the 8.1 percent recorded in April, and lower than the estimate of 5.0 percent export growth from a Reuters poll of economists. Its exports to the US suffered a steep decline of 34.5 percent. The sharp monthly fall widened from a 21 percent drop in April and came despite the trade truce announced on May 12 that brought American tariffs on Chinese goods down from 145 percent to 30 percent. Still, Lü Daliang, a spokesperson for the customs department, talked up China's economic strength, telling the state-run media Xinhua that China's goods trade has demonstrated 'resilience in the face of external challenges.' Meanwhile, deflationary pressures continue to stalk the world's second-largest economy, according to data released separately on Monday by the National Bureau of Statistics (NBS). In May, China's Consumer Price Index (CPI), a benchmark for measuring inflation, dropped 0.1 percent compared to the same month last year. Factory-gate deflation, measured by the Producer Price Index (PPI), worsened with a 3.3 percent decrease in May from a year earlier. Last month's drop marks the sharpest year-on-year contraction in 22 months, according to NBS data. Dong Lijuan, chief statistician at the NBS, attributed the decline in producer prices, which measures the average change in prices received by producers of goods and services, to a drop in global oil and gas prices, as well as the decrease in prices for coal and other raw materials due to low cyclical demand. The high base of last year was cited as another reason for the decline, Dong said in a statement.
See - Sada Elbalad
5 hours ago
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China Offers EU Strategic Trade Deal: Rare Earth Metals in Exchange for EV Market Access
Ahmed Emam Behind closed doors in the heart of Paris, high-stakes negotiations unfolded this week that could reshape the future of East-West trade. China, which controls over 90% of the global production of rare earth elements, has presented a strategic proposal to the European Union: open up the European market to Chinese electric vehicles (EVs) in exchange for stable access to critical raw materials. The offer, dubbed a potential 'green channel' for Chinese EVs, comes amid intensifying trade tensions between Beijing and Brussels, particularly over issues of pricing and subsidies in the clean energy sector. China's Ministry of Commerce confirmed in a statement that discussions over pricing commitments in the EV sector have reached a 'critical stage,' though further effort is needed from both sides to reach a final deal. The negotiations took place during a meeting between Chinese Commerce Minister Wang Wentao and European Commissioner for Trade Valdis Dombrovskis. While the focus was primarily on electric vehicles, trade friction has expanded to include other sectors — especially French products, which have faced new Chinese restrictions in retaliation for EU anti-dumping investigations. Despite the strain, sources familiar with the talks revealed that a preliminary agreement has been reached regarding these disputed French goods, pending final approval ahead of a scheduled EU-China summit in July. The timing of these discussions is particularly significant, as they come on the eve of the 50th anniversary of diplomatic and economic relations between China and the European Union. The upcoming summit is widely viewed as a pivotal moment: a chance to either reset the tone of economic cooperation or open a new chapter of competition and mistrust. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Al-Ahram Weekly
10 hours ago
- Al-Ahram Weekly
US, China seek to extend trade truce with London talks - Economy
After a round of talks in Geneva last month, the United States and China will sit down at the negotiating table in London on Monday to attempt to preserve a fragile truce on trade, despite simmering tensions. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will lead the US delegation, President Donald Trump announced Friday. Chinese Vice Premier He Lifeng -- who led Beijing's negotiating team in Geneva -- will also head the team in London, China's foreign ministry announced at the weekend. "The meeting should go very well," Trump said in a post on his Truth Social platform. His press secretary, Karoline Leavitt, told Fox News on Sunday: "We want China and the United States to continue moving forward with the agreement that was struck in Geneva." While the government of UK Prime Minister Keir Starmer reiterated that it was not involved in the content of the discussions in any way, a spokesperson said, "We are a nation that champions free trade." UK authorities "have always been clear that a trade war is in nobody's interests, so we welcome these talks," the spokesperson added. 'Correcting the course' The talks in London come just a few days after Trump and Chinese President Xi Jinping finally held their first publicly announced telephone talks since the Republican returned to the White House. Trump said the call, which took place on Thursday, had reached a "very positive conclusion." Xi was quoted by state-run news agency Xinhua as saying that "correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction." The call came after tensions between the world's two biggest economies had soared, with Trump accusing Beijing of violating a tariff de-escalation deal reached in Geneva in mid-May. "We need China to comply with their side of the deal. And so that's what the trade team will be discussing tomorrow," Leavitt said Sunday. In April, Trump introduced sweeping worldwide tariffs that targeted China most heavily. At one point the United States hit China with additional levies of 145 percent on its goods as both sides engaged in tit-for-tat escalation. China's countermeasures on US goods reached 125 percent. Then in Switzerland, after two days of talks, the two sides agreed to slash their staggeringly high tariffs for 90 days. But differences have persisted, including over China's restrictions on the export of rare earth minerals used in tech products. The impact was reflected in the latest official export data released Monday in Beijing. Exports to the United States fell 12.7 percent on month in May, with China shipping $28.8 billion worth in goods last month. This is down from $33 billion in April, according to Beijing's General Administration of Customs. 'Green channel' Throughout its talks with Washington, China also has launched discussions with other trading partners -- including Japan and South Korea -- in a bid to build a united front to counter Trump's tariffs. On Thursday, Beijing turned to Canada, with the two sides agreeing to regularize their channels of communication after a period of strained ties. Canadian Prime Minister Mark Carney and Chinese Premier Li Qiang also discussed trade and the fentanyl crisis, Ottawa said. Beijing proposed establishing a "green channel" to ease the export of rare earths to the European Union, and fast-tracking approval of some export licenses. That proposal from the commerce ministry in Beijing came after talks on Tuesday between China's Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic. China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties. Follow us on: Facebook Instagram Whatsapp Short link:
