Beijing leverages scarce rare earth elements as strategic instruments
Title: Trade Talks in London: The Game of Rare Earths
Between the USA and China, negotiations to alleviate trade tensions are still ongoing in London. The focus now lies on rare earths and trade restrictions, but analysts cautiously warn that China might not be in a hurry for a deal.
UK's Capital Awash with Delegates
Today, world leaders flocked to the Lancaster House in London for the much-anticipated talks. Among them were the US Treasury Secretary Scott Bessent and Trade Minister Howard Lutnick, as well as Chinese Vice-Premier He Lifeng and Trade Minister Wang Wentao.
Despite the lack of official statements, US economic advisor Kevin Hassett optimistically told CNBC, "I expect a brief meeting, with a firm handshake." Trump, on the other hand, declared, "We're doing very well with China. I'm only getting good reports."
Trade Restrictions: The New Battlefield
Progress in the negotiations is desperately sought by the global market, as Trump's tariffs and erratic trade relationships between the US and China have left their economies in turmoil. "The market is accepting Trump's statements, and likewise, it appears that Lutnick and Bessent are relatively satisfied with the progress," said market analyst Tony Sycamore of IG. Yet, markets anxiously await concrete announcements.
Clash of the Titans: China's Hydro-mineral Act
About a month ago, both parties agreed to a 90-day truce in the trade war and a significant reduction in tariffs. This time, however, trade restrictions appear to be the central topic. The shortage of rare earths, essential for EV motors, is creating concern, as China moves to tighten its export controls to squeeze its adversaries.
Is a Deal Immediate?
China reigns supreme in the production of rare earths, essential for the advancement of numerous industries. "I believe there will be a compromise deal, but at least a deal," said Peter Cardillo, chief economist at financial services firm Spartan. Economists at Citi argue that China may not urgently need to strike a deal, as high-frequency trackers suggest stable shipping activities into June.
Rare Earths and the Return of the Dragon
In April, China's April decision to halt exports of a range of critical minerals and magnets caused friction in global supply chains. Recently, however, US and Chinese officials have agreed on a new trade framework, involving China supplying the US with rare earths. This agreement aims to ease tensions over rare earth access, suggesting a thawing of ties, though the specifics of the deal remain complex.
Source: ntv.de, jki/dpa/rts/DJ
- China
- USA
- Trade disputes
- Rare earths
- London
- Geopolitics
Caveat: It is essential to note that China's rare earth supply to the US is a developing situation, and specifics regarding the deal remain uncertain. Nonetheless, an apparent easing of tensions concerning rare earth access is evident.
- The upcoming trade talks in London revolve around rare earths, a topic that is crucial for technological advancements like electric vehicle motors, and this could significantly impact the community and employment policies within the technology and education-and-self-development sectors.
- As the discussion over trade restrictions continues, experts suggest that a compromise deal between China and the USA could affect the lifestyle and employment policies of various industries dependent on rare earths, such as general-news outlets who closely monitor the geopolitical implications of the negotiations.
