US, China Gear Up for High-Stakes Meeting in London
Trump's economic adviser claims that even while rare earth exports have started up again, they are still below the amounts specified in the Geneva accord.
Washington— In a further attempt to end the impasse following the failure of last month's Geneva talks to yield significant outcomes, U.S. and Chinese trade negotiators will return to the table on June 9—this time in London.
The crucial meeting comes after President Donald Trump called Chinese leader Xi Jinping on June 5 and declared that the conflict over China's export limits on rare earths, a major economic roadblock, had been settled.
After the call, Trump stated on Truth Social that "there should no longer be any questions respecting the complexity of Rare Earth products." "Our individual teams will meet soon at a location to be decided."
The crucial meeting comes after President Donald Trump called Chinese leader Xi Jinping on June 5 and declared that the conflict over China's export limits on rare earths, a major economic roadblock, had been settled.
After the call, Trump stated on Truth Social that "there should no longer be any questions respecting the complexity of Rare Earth products." "Our individual teams will meet soon at a location to be decided."
Trump publicly voiced his displeasure with Beijing's bargaining strategies the day before, calling Xi "very tough" and "extremely hard to make a deal with" in a Truth Social post. This prompted the hour-and-a-half-long chat.
The U.S. trade officials would urge their Chinese counterparts to fully adhere to the conditions of the trade agreement signed in Geneva on May 12 that included reciprocal tariff reductions, White House press secretary Karoline Leavitt said. As per the agreement, both nations committed to a 115 percent tariff reduction while keeping a 10 percent tax in place.
The U.S. trade officials would urge their Chinese counterparts to fully adhere to the conditions of the trade agreement signed in Geneva on May 12 that included reciprocal tariff reductions, White House press secretary Karoline Leavitt said. As per the agreement, both nations committed to a 115 percent tariff reduction while keeping a 10 percent tax in place.
On June 8, Leavitt told Fox News, "The administration has been monitoring China's compliance with the deal, and we hope that this will move forward to have more comprehensive trade talks."
Rare Earths Still in Focus
Trump claims that the rare earths conflict has been settled, but his officials are still wary.
Kevin Hassett, the director of the National Economic Council, said that although rare earth shipments have started up again, they are still below the previously agreed-upon levels.
Kevin Hassett, the director of the National Economic Council, said that although rare earth shipments have started up again, they are still below the previously agreed-upon levels.
He stated on CBS' "Face the Nation" on June 8 that "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."
"They understand that we don't want any technical details to slow down the flow of rare earths, the magnets that are essential for cell phones and everything else, and we want them to flow just as they did before the week of April."
"They understand that we don't want any technical details to slow down the flow of rare earths, the magnets that are essential for cell phones and everything else, and we want them to flow just as they did before the week of April."
Beijing implemented export controls on vital rare earth elements, metals, and magnets on April 4 in retaliation for Trump's Liberation Day tariffs. Seven rare earth elements—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—have seen stricter export restrictions from Beijing, putting pressure on supply chains vital to the US aerospace, automotive, and defense industries.
The most recent limitations come after an export ban on three important minerals—antimony, gallium, and germanium—that was put in place in December 2024 as payback for technology limits that former President Joe Biden had put in place against the Chinese communist government.
The most recent limitations come after an export ban on three important minerals—antimony, gallium, and germanium—that was put in place in December 2024 as payback for technology limits that former President Joe Biden had put in place against the Chinese communist government.
With approximately 60% of global output and nearly 85% of processing capacity, China controls the majority of the world's rare earth supply chains. In recent years, the Chinese government has used that supremacy as a tactical tool against other nations.
Hassett was upbeat about the London meeting, even if the terms of the agreement are still being negotiated.
He declared, "I'm really at ease that this deal is going to be finalized."
The negotiations are nevertheless hampered by deeper trade concerns.
Hassett was upbeat about the London meeting, even if the terms of the agreement are still being negotiated.
He declared, "I'm really at ease that this deal is going to be finalized."
The negotiations are nevertheless hampered by deeper trade concerns.
China’s Longstanding Trade Violations
The U.S. Commerce Department claimed that Huawei Technologies' Ascend computer chips were created in violation of U.S. export regulations, and in May it announced a new rule that prohibited their use globally.
Beijing criticized the action and called on the U.S. administration to reverse it.
The latest conflict was a reflection of larger American concerns about Beijing's long-standing unfair trade policies that hurt American workers and companies.
These contentious trade practices—which include stealing intellectual property, attacking foreign companies doing business in the nation, manipulating its currency, and heavily subsidizing domestic companies—have been a major factor in Communist China's rise since the country joined the World Trade Organization in 2001.
The latest conflict was a reflection of larger American concerns about Beijing's long-standing unfair trade policies that hurt American workers and companies.
These contentious trade practices—which include stealing intellectual property, attacking foreign companies doing business in the nation, manipulating its currency, and heavily subsidizing domestic companies—have been a major factor in Communist China's rise since the country joined the World Trade Organization in 2001.
Some China hawks in Washington believe that Beijing is determined to maintain these mercantilist trade practices.
According to Robert Atkinson, president of the Information Technology and Innovation Foundation, a think tank focused on science and technology, Beijing is not willing to compromise on these fundamental issues that the United States wants addressed, even if it does come to the negotiating table.
In an interview with The Epoch Times in April, he stated, "They have never even been willing to acknowledge that these are problems."
The extent to which Beijing's unfair trade practices will be discussed or remedied during the London negotiations is yet unknown.
On May 30, Beijing first denied violating the Geneva trade accord. On June 2, a Chinese Commerce Ministry official attacked Washington's decision to cancel visas for Chinese students with connections to the Chinese Communist Party in a statement released through state media, further intensifying the regime's rhetoric.
"The President will always prioritize American workers and industries, and the United States and China have strategic interests in each other's markets," Leavitt stated in the Fox News interview. The Geneva discussions laid the groundwork for that, but China must fulfill their end of the bargain. The trade team will thus be talking about that tomorrow.
The U.S. team will issue a readout after the meeting, she said.
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