Latest news with #exportControls
Malay Mail
6 days ago
- Business
- Malay Mail
US-China trade truce sidesteps military-use rare earth dispute, sources say
BEIJING, June 16 — The renewed US-China trade truce struck in London left a key area of export restrictions tied to national security untouched, an unresolved conflict that threatens a more comprehensive deal, two people briefed on detailed outcomes of the talks told Reuters. Beijing has not committed to grant export clearance for some specialised rare-earth magnets that US military suppliers need for fighter jets and missile systems, the people said. The United States maintains export curbs on China's purchases of advanced artificial intelligence chips out of concern that they also have military applications. At talks in London last week, China's negotiators appeared to link progress in lifting export controls on military-use rare earth magnets with the longstanding US curbs on exports of the most advanced AI chips to China. That marked a new twist in trade talks that began with opioid trafficking, tariff rates and China's trade surplus, but have since shifted to focus on export controls. In addition, US officials also signalled they are looking to extend existing tariffs on China for a further 90 days beyond the August 10 deadline agreed in Geneva last month, both sources said, suggesting a more permanent trade deal between the world's two largest economies is unlikely before then. The two people who spoke to Reuters about the London talks requested not to be named because both sides have tightly controlled disclosure. The White House, State Department and Department of Commerce did not immediately respond to requests for comment. China's Foreign and Commerce ministries did not respond to faxed requests for comment. President Donald Trump said on Wednesday the handshake deal reached in London between American and Chinese negotiators was a 'great deal,' adding, 'we have everything we need, and we're going to do very well with it. And hopefully they are too.' And US Treasury Secretary Scott Bessent said there would be no 'quid pro quo' on easing curbs on exports of AI chips to China in exchange for access to rare earths. China chokehold But China's chokehold on the rare earth magnets needed for weapons systems remains a potential flashpoint. China dominates global production of rare earths and holds a virtual monopoly on refining and processing. A deal reached in Geneva last month to reduce bilateral tariffs from crushing triple-digit levels had faltered over Beijing's restrictions on critical minerals exports that took shape in April. That prompted the Trump administration to respond with export controls preventing shipments of semiconductor design software, jet engines for Chinese-made planes and other goods to China. At the London talks, China promised to fast-track approval of rare-earth export applications from non-military US manufacturers out of the tens of thousands currently pending, one of the sources said. Those licenses will have a six-month term. Beijing also offered to set up a 'green channel' for expediting license approvals from trusted US companies. Initial signals were positive, with Chinese rare-earths magnet producer JL MAG Rare-Earth, saying on Wednesday it had obtained export licences that included the United States, while China's Commerce Ministry confirmed it had approved some 'compliant applications' for export licences. But China has not budged on specialised rare earths, including samarium, which are needed for military applications and are outside the fast-track agreed in London, the two people said. Automakers and other manufacturers largely need other rare earth magnets, including dysprosium and terbium. Big issues remain The rushed trade meeting in London followed a call last week between Trump and Chinese leader Xi Jinping. Trump said US tariffs would be set at 55 per cent for China, while China had agreed to 10 per cent from the United States. Trump initially imposed tariffs on China as punishment for its massive trade surplus to the United States and over what he says is Beijing's failure to stem the flow of the powerful opioid fentanyl into the US Chinese analysts are pessimistic about the likelihood of further breakthroughs before the August 10 deadline agreed in Geneva. 'Temporary mutual accommodation of some concerns is possible but the fundamental issue of the trade imbalance cannot be resolved within this timeframe, and possibly during Trump's remaining term,' said Liu Weidong, a US-China expert at the Institute of American Studies, Chinese Academy of Social Sciences. An extension of the August deadline could allow the Trump administration more time to establish an alternative legal claim for setting higher tariffs on China under the Section 301 authority of the USTR in case Trump loses the ongoing legal challenge to the tariffs in US court, one of the people with knowledge of the London talks said. The unresolved issues underscore the difficulty the Trump administration faces in pushing its trade agenda with China because of Beijing's control of rare earths and its willingness to use that as leverage with Washington, said Ryan Hass, director of the John L. Thornton China Centre at the Brookings Institution. 'It has taken the Trump team a few punches in the nose to recognise that they will no longer be able to secure another trade agreement with China that disproportionately addresses Trump's priorities,' Hass said. — Reuters
The Independent
11-06-2025
- Business
- The Independent
A timeline of the US-China tariff and trade spat since President Trump took office this year
Shortly after President Donald Trump returned to the White House in January, he launched a tariff war against China, as part of a broader implementation of import taxes on goods from several dozen countries as Trump seeks to reset the foundations of global trade. Beijing retaliated, and the tariffs on each other escalated to a level that was considered a trade embargo, bringing the two sides to the negotiating table in Geneva in May. Both sides rolled back their tariffs, but tensions flared up over nontariff barriers such as export controls. China tightened foreign shipments of critical minerals, and the U.S. imposed more export controls on advanced technology and threatened to revoke visas for Chinese students. Trump and Xi had a phone call on June 5, before senior officials from the two governments met in London on this week to reach a 'framework" to move forward. Here are the key moments in this year's trade spat and walk-backs. Feb. 4, 2025 New 10% tariffs on all Chinese imports to the U.S. come into effect. The levies are meant to pressure Beijing to do more to stop the illegal flow of synthetic opioids. China retaliates the same day by announcing a flurry of countermeasures, including duties on American coal, liquefied natural gas and agricultural machinery. March 4, 2025 Additional 10% tariffs on all Chinese goods will go into effect, also related to opioid trafficking. China responds with additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy and beef, and expanded controls on doing business with key U.S. companies. April 2, 2025 On Trump's so-called tariff 'Liberation Day,' he announces additional 34% duties on all Chinese imports, alongside tariffs on goods from countries around the world. The sweeping tariffs are to come into effect April 9. April 4, 2025 China announces a tit-for-tat 34% tariff on U.S. goods and other retaliatory moves including more export controls on rare earth minerals, and files a lawsuit at the World Trade Organization. China also suspends imports of sorghum, poultry and bonemeal from several U.S. companies, adds 27 firms to lists of companies facing trade restrictions, and starts an anti-monopoly probe into DuPont China Group Co. April 7, 2025 In response to China's 34% tariff, Trump announces an additional 50% tariff on China. April 9, 2025 China responds by raising the tariff on U.S. goods to 84%. Citing a 'lack of respect,' Trump threatened to further raise tariffs on China to 125%. April 10, 2025 The White House administration clarifies that the tariff on Chinese goods would be 145%. That includes the 20% duty Trump has put on China for its role in the production of fentanyl. April 11, 2025 China hits back by raising the tariff on U.S. products to 125%. May 12, 2025 Following a two-day trade talk in Geneva, the United States and China agree to slash their massive recent tariffs. The U.S. drops the 145% tariff to 30%. China agrees to lower its tariff rate on U.S. goods to 10%. May 28, 2025 U.S. Secretary of State Marco Rubio announces plans to 'aggressively revoke visas for Chinse students, including those with connection to the Chinese Communist Party or studying in critical fields.' Reports also have emerged that the White House has paused exports of jet engine and semiconductor technology to China. June 5, 2025 Trump and Chinese President Xi Jinping speak on the phone and announce an upcoming round of trade talks. June 11, 2025 Following a two-day talk in London by senior American and Chinese officials, Trump says the U.S. will get a 'total of 55% tariffs', and China is getting 10%. Trump also says China will be supplying rare earths to China, and the U.S. will welcome Chinese students to American colleges and universities.
The Independent
10-06-2025
- Business
- The Independent
US-China trade talks ‘going well' as meeting resumes for second day in London
US commerce secretary Howard Lutnick said trade talks with China were going well as the two sides met in London for a second day on Tuesday, looking for a breakthrough on export controls that have threatened a fresh rupture between the world's two largest economies. US and Chinese officials are trying to get back on track after Washington accused Beijing of blocking exports of rare earth minerals critical to America's economy, straining ties after they had struck a preliminary deal in Geneva last month to step back from a full-blown trade embargo. White House economic adviser Kevin Hassett said on Monday that the US was ready to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths and magnets. The talks went on 'all day yesterday' and were expected 'all day today", Mr Lutnick said. "They're going well, and we're spending lots of time together," he said. President Donald Trump 's shifting tariff policies have roiled global markets, sparked congestion and confusion at major ports, and cost companies tens of billions of dollars in lost sales and higher costs. Aided by the reset in Geneva, markets have made up some of the losses they endured after Mr Trump unveiled his sweeping "Liberation Day" tariffs in April. The second round of the talks, which followed a rare phone call between Mr Trump and Chinese leader Xi Jinping last week, comes at a crucial time for both economies. Customs data published on Monday showed that China's exports to the US plunged 34.5 per cent in May, the sharpest drop since the outbreak of the Covid pandemic. While the impact on US inflation and its jobs market has so far been muted, tariffs have hammered American business and household confidence and kept the dollar under pressure. The talks have been led by Mr Lutnick, US treasury secretary Scott Bessent and trade representative Jamieson Greer, with the Chinese contingent helmed by vice premier He Lifeng. The talks ran for almost seven hours on Monday and resumed just before 10am GMT on Tuesday, with both sides expected to issue updates later in the day. The inclusion of Mr Lutnick, whose agency oversees export controls for the US is one indication of how central rare earths have become. He did not attend the Geneva talks, when the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains and sparked alarm in boardrooms and factory floors around the world. Kelly Ann Shaw, a White House trade adviser during Mr Trump's first term and now a trade partner at the Akin Gump law firm in Washington, said she expected Beijing to reaffirm its commitment to lift retaliatory measures, including export restrictions, 'plus some concessions on the US side, with respect to export control measures over the past week or two". But Shaw said she expected the US to only agree to lift some new export curbs, not longstanding ones such as for advanced artificial intelligence chips. In May, the US ordered a halt to shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued.
CNA
10-06-2025
- Business
- CNA
Trade talks with China going well, says US commerce secretary
LONDON: US Commerce Secretary Howard Lutnick said on Tuesday (Jun 10) trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. US and Chinese officials are trying to get back on track after Washington accused Beijing of blocking exports of rare earth minerals that are critical to its economy, straining ties after they struck a preliminary deal in Geneva last month to step back from a full-blown trade embargo. White House economic adviser Kevin Hassett said on Monday that the US was ready to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths and magnets. "(Talks went on) all day yesterday, and I expect (them) all day today," Lutnick told reporters. "They're going well, and we're spending lots of time together." Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. But markets have made up much of the losses they endured after Trump unveiled his sweeping "Liberation Day" tariffs in April, aided by the reset in Geneva between the world's two biggest economies. The second round of US-China talks, which followed a rare phone call between Trump and Chinese President Xi Jinping last week, comes at a crucial time for both economies. Customs data published on Monday showed that China's exports to the US plunged 34.5 per cent in May, the sharpest drop since the outbreak of the COVID-19 pandemic. While the impact on US inflation and its jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure. DISCUSSING DISAGREEMENTS The talks have been led by US Treasury Secretary Scott Bessent, Lutnick and US Trade Representative Jamieson Greer, with the Chinese contingent helmed by Vice Premier He Lifeng. The talks ran for almost seven hours on Monday and resumed just before 10am local time on Tuesday, with both sides expected to issue updates later in the day. The inclusion of Lutnick, whose agency oversees export controls for the US, is one indication of how central rare earths have become. He did not attend the Geneva talks, when the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains and sparked alarm in boardrooms and factory floors around the world. Kelly Ann Shaw, a former White House trade adviser during Trump's first term and now a trade partner at the Akin Gump law firm in Washington, said she expected China to reaffirm its commitment to lift retaliatory measures, including export restrictions, "plus some concessions on the US side, with respect to export control measures over the past week or two". But Shaw said she expected the US to only agree to lift some new export curbs, not longstanding ones such as for advanced artificial intelligence chips. In May, the US ordered a halt to shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued.
Reuters
10-06-2025
- Business
- Reuters
US, China set for second day of trade talks in London
Top U.S. and Chinese officials will resume trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls for goods such as rare earths that have threatened a global supply chain shock and slower economic growth. Julian Satterthwaite reports.
