Trump says Xi to restart rare earth flows, sets date for talks
FILE PHOTO: Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China October 31, 2010. Donald Trump and Xi Jinping agreed to defuse growing tensions spurred by concerns over the flow of critical minerals needed by American firms.- Reuters
WASHINGTON: President Donald Trump said his Chinese counterpart Xi Jinping had agreed to restart the flow of rare-earth materials, as negotiators from the two nations prepare to resume trade talks on June 9 in London.
The developments come as the world's two largest economies look to resolve a simmering dispute over tariffs and technology that has unnerved markets. Trump and Xi held a 90-minute call on Thursday (June 5) that saw the two agree to defuse growing tensions spurred by concerns over the flow of critical minerals needed by American firms.
US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer are set to meet Monday "with Representatives of China, with reference to the Trade Deal,' Trump said Friday on social media. "The meeting should go very well.'
Earlier talks between the two countries in Switzerland in May resulted in a tariff truce between Beijing and Washington that set the stage for further discussions on trade. But negotiations between the rivals stalled after the Geneva meeting, with both sides accusing the other of violating the agreement that brought down duties from massive highs.
The US expressed concerns over the lack of rare-earth magnets essential for American electric vehicles and defense systems, while China bristled at fresh US restrictions on artificial intelligence chips from Huawei Technologies Co., as well as other advanced technologies and crackdowns on foreign students in the US.
Asked Friday if Xi had agreed to restart the flow of rare-earth minerals and magnets, Trump told reporters on Air Force One: "Yes he did.'
China also approved temporary export licences to critical mineral suppliers to major US automakers, Reuters reported earlier.
But questions remain about what Trump conceded to Xi in their call, which the US president had eagerly sought. The Chinese Foreign Ministry in a statement said that Trump told Xi Chinese students are welcome to study in the US, and Trump later said it would be his "honour' to welcome them.
The call between Trump and Xi generated some hope on Wall Street for lower duties between the US and China, although investor optimism was limited, citing the lack of details on key matters and the thorny issues that await negotiators.
The inclusion of Lutnick in the new round of talks may signal that Trump is willing to reconsider some of the technology curbs that threaten to hobble China's long-term growth ambitions. - Bloomberg
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
UK and India discuss 'counter-terrorism' cooperation after Pakistan ceasefire
British Foreign Secretary David Lammy reacts as he speaks during an interview with Reuters at the British High Commissioner Residence in New Delhi, India, June 7, 2025. REUTERS/Anushree Fadnavis NEW DELHI (Reuters) -Britain and India on Saturday discussed expanding their "counter-terrorism" collaboration following recent fighting between India and Pakistan, Britain's foreign minister told Reuters after meeting Indian Prime Minister Narendra Modi. British foreign minister David Lammy is the highest-profile Western official to have visited both New Delhi and Islamabad since the South Asian neighbours agreed to a ceasefire last month after their worst fighting in nearly three decades. The latest tensions began in April after the killing of 26 men in Indian Kashmir that New Delhi blamed on "terrorists" backed by Pakistan, a charge Islamabad denied. India then attacked what it called "terrorist infrastructure" in Pakistan, leading to escalation from both sides until a May 10 ceasefire. "We want the situation to be maintained, but of course we recognise fragility, particularly in the backdrop of terrorism, terrorism designed to destabilise India," Lammy said in an interview at the residence of the British High Commissioner in New Delhi. "We are keen to continue to work with our Indian partners on counter-terrorism measures." He said he discussed the next steps with both Modi and Indian Foreign Minister S. Jaishankar, but gave no specifics. Last year, India and Britain discussed combating the financing of terrorism, cooperation between law enforcement and judicial bodies and information sharing. Lammy said he also discussed boosting trade between the world's fifth and sixth largest economies. The countries concluded talks for a free trade deal early last month. "I know that Prime Minister Keir Starmer is very much looking forward to coming to India very soon to sign the free trade agreement," Lammy said. "There is so much that our two nations can continue to do together." (Reporting by Krishna N. Das in New Delhi. Editing by Mark Potter)
The Star
2 hours ago
- The Star
EU pushes China to address ‘alarming' rare earth export controls
The EU has urged China to stop restricting the export of rare earth minerals and magnets, with the bloc's trade chief saying its industries are in an 'alarming situation'. The request was made during a meeting between the sides' top commerce officials in Paris on Tuesday. It comes as sectors across Europe raise the alarm about a shortage of rare earths, which are used to manufacture hi-tech goods ranging from electric cars and smartphones to military tanks and aircraft. 'I informed my Chinese counterpart about the alarming situation in the European car industry, but I would say industry as such because clearly rare earths and permanent magnets are absolutely essential for industrial production,' Maros Sefcovic said on Wednesday, briefing reporters a day after his meeting with Chinese Commerce Minister Wang Wentao. Around 90 per cent of the world's supply of rare earth minerals comes from China, which introduced export controls on their shipments in April in retaliation to US President Donald Trump's 'reciprocal' tariffs. Rare earths consist of 17 elements. On April 4, Beijing added seven of these – dysprosium, gadolinium, lutetium, samarium, scandium, terbium and yttrium – to its export control list, plus several rare earth magnets, two days after Trump announced 'reciprocal tariffs', meaning licenses are now required for their export. While such restrictions were ostensibly intended to punish the US, firms around the world have been caught in the crossfire. Business chambers and industry groups have urged European governments to push for a solution, as mineral stocks run low and some areas of production grind to a halt. European companies have complained that China's commerce ministry seemed incapable of handling the voluminous requests, with licenses being issued slowly and on a piecemeal basis. 'Some applicants are asked for sensitive information that might compromise their intellectual property so they're reluctant to hand that over, but they need to if they want to get approval,' Adam Dunnett, secretary general at the EU Chamber of Commerce in China, said. The chamber has held 'emergency meetings' with Chinese authorities in recent days after an outpouring of anxiety from across European industry. 'I haven't seen anything of this magnitude for a long time,' Dunnett said of the level of concern among EU businesses. Sefcovic said that the two sides had compared figures on the number of applications versus the licenses issued. The figures did not match, Sefcovic said, adding that the EU would supply Beijing with 'all the data and would cover all the companies which are now in an extremely difficult situation'. Sefcovic suggested that Beijing could simplify its system, which now screens all requests for 'dual use' applications, meaning the rare earths could go towards military production. 'Some of the car companies are already announcing that if this issue is not addressed, there might be huge production difficulties in a short period of time,' Sefcovic said. 'His information was a little bit different, and therefore we agreed that he would clarify this as soon as possible, and that we would also address the propositions I made yesterday, and this was that our strong preference here,' he added. The EU's proposals include 'not to cover ... civilian production by this very complex system', Sefcovic said. The bloc would also like to see a 'general application ... to cover it once a year for the whole production', eliminating the need for cumbersome repeat applications. Sefcovic said the EU wanted the changes to avoid 'huge paperwork delays and stress, which this presents for our industry and for our companies. 'We agree that we will come back to this issue relatively soon.' Also on Wednesday, the EU named 13 projects it would initiate beyond its borders to help improve its self-sufficiency in rare earths and critical minerals. 'The export bans reinforce our will to diversify and perhaps even strengthen the relevance of our focus on reducing dependencies,' Stephane Sejourne, the European Commission's head of industrial strategy, said in announcing the projects in Brussels. Two projects will cover rare earth minerals in Malawi and South Africa, while others focus on various raw materials in Britain, Canada, Greenland, Kazakhstan, Madagascar, Norway, Serbia, Ukraine, Zambia, Brazil and New Caledonia, a French overseas territory. The rare earth crisis adds another complication to already tense EU-China trade ties. Earlier this week, the bloc's member states voted to exclude Chinese companies from its lucrative medical devices procurement market after Beijing refused to open its tenders to the EU. In a bid to crack down on a deluge of small packages from Chinese e-tailers Temu and Shein, Brussels plans to add a surcharge of €2 (US$2.28) to small parcels imported. The EU also remains frustrated over Beijing's refusal to acknowledge state subsidies that it claims are leading to market-distorting industrial overcapacity. China, on the other hand, claims that Europe's moves to target its exporters are against the rules of global trade. - SOUTH CHINA MORNING POST
The Sun
3 hours ago
- The Sun
Three killed in Russian attack on Ukraine's Kharkiv; Ukrainian drones injure two near Moscow
LONDON: Overnight missile and bomb strikes by Russia on the Ukrainian city of Kharkiv left three people dead and 22 hurt, while a Ukrainian drone attack in the Moscow region wounded two people, officials from both countries said separately on Saturday. Russian forces used high-precision long-range weapons and drones to hit designated military targets in Ukraine overnight, hitting all of them, according to Russia's Defence Ministry. Separately, Ukraine has indefinitely postponed accepting the bodies of its killed soldiers and the exchange of prisoners of war, Kremlin aide Vladimir Medinsky said. This was counter to an agreement between the two countries at a second round of peace talks in Istanbul on Monday, where they said they would swap more prisoners and return the bodies of 12,000 dead soldiers. The northeastern city of Kharkiv, one of Ukraine's largest, is just a few dozen kilometres (miles) from the Russian border and has been under frequent Russian shelling during more than three years of war triggered by Russia's full-scale invasion. 'Kharkiv is currently experiencing the most powerful attack since the start of the full-scale war,' Mayor Ihor Terekhov said in a post on Telegram earlier on Saturday. Residential buildings, educational and infrastructure facilities were attacked, he said, and photos showed buildings burnt and reduced partially to rubble, as rescuers carried the wounded away for treatment. Kharkiv regional Governor Oleh Syniehubov said there could still be people buried under the rubble after one civilian industrial facility was hit by 40 drones and several bombs. In the Moscow region, two people were injured after a drone attack by Ukraine overnight and on Friday, Governor Andrei Vorobyov said on Telegram, with nine drones shot down. Russia's aviation watchdog said operations had resumed at the Domodedovo, Sheremetyevo and Zhukovsky airports in the Moscow region after being suspended temporarily for flight safety reasons. The Defence Ministry said that since midnight, air defence units had intercepted and destroyed 36 Ukrainian drones over Russian territory, including the Moscow region. Ukraine's air forces also shot down a Russian Su-35 fighter jet on Saturday morning, its military said without providing further details. Russian forces have not yet commented on the matter while Reuters could not independently verify the report. A Ukrainian drone attack deep inside Russian territory last weekend likely damaged around 10% of Russia's strategic bomber fleet and hit some of the aircraft as they were being prepared for strikes on Ukraine, a senior German military official said in a YouTube podcast set for broadcast later on Saturday.
