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A whoop-de-damn-doo moment, it seems! The Yanks and the Reds have allegedly scrapped out an accord on slimming down export restrictions for that precious schmear, rare earth elements, in their latest trade tile-a-tap in Blighty. Initial nods are yet to spurt from the heads of Trump and Xi, but that's what the ol' Trump Engine room is claiming.
The chinwag in question was a high-stakes chinwag, featuring important players from both camps. The Chinese side boasted Vice Premier He Lifeng and Commerce Minister Wang Wentao, while the Yanks sent elite officers such as Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo to represent the cause.
According to Trump himself, the Reds have promised to provide rare earth elements to the Yanks. In retribution, the Yanks have vowed to keep letting the Chinese scholars sip from the well of American education. Yippee.
Trump also claimed that there's a deal going down between the two economic titans regarding their ruckus over trade. Trump announced that those Chinese doodads shipped to the US will carry a whopping 55% tariff, and in response, the Yanks will impose a measly 10% duty on Chinese imports. What a keen negotiation, mate! Relations, apparently, are exemplary, according to the Yank cheesehead.
Phew, Dodged a Bullet!
The grapevine was alive with the news that those two economic titans had thrashed out a consensus to enforce a framework for trade McEasey-Bones, based on the phone chat between the leaders on June 5 and the chinwag in Geneva in May mid-month. The trade tussle between Bejing and Washington has hammered the global economy for eons now.
Before the hoedown in London, China and the US had held their first high-level chinwag since the escalation of the trade row in mid-May in Geneva. At that time, both factions agreed to momentarily reduce their tariffs for a cool 90 days. Trump escalated the tariffs on Chinese swag to an eye-watering 25% in April. China responded by imposing export restrictions and chucking back tariffs on Yank swag assessable to 25%. The Yank top dog has been a pretty big pain in the ass when it comes to China's trade policy since he took over. Despite the truce in Geneva, tensions have escalated rather dramatically in recent times.
Rare Earths in the Spotlight
It had long been suspected that the chinwag in London would zero in on mutual tariffs and focus more on China's export restrictions for rare earths. For instance, economic guru Kevin Hassett, the Trump administration's economic advisor, had hinted on the CNBC network that such a deal was precisely what the talks were aiming for. The People's Republic controls a gross 90% of the rare earth market.
Old Trump recently gushed about the prospect of China restarting rare earth exports.
What's the Biggie About Rare Earths, Anyway?
China commands the lion's share of the rare earth market, my friend. These bad boys are critical ingredients for the construction of many products, like electric engines, sensors, and whatnot. In early April, ol' China, in a hissy fit over trade, slapped export controls on seven rare earths and magnets crafted from the aforesaid materials. This meant companies required licenses to export these suckers, which are essential for electric motors, sensors, and the defense sector. This made many worldwide corpies horribly nervous.
China processes a whole bunch of these elements but relies on foreign tech for high-tech products like specific aircraft gear or chip design software. The last thing they'd want is for the Yanks to further tighten the noose on their technology exports. Tough break, Bejing!
In essence, while there's been no formal agreement on easing export restrictions for rare earths between the Yanks and the Reds, discussions on critical minerals have been a significant part of broader trade talks. Diversification efforts by both parties, as well as the impact of changes in export policies, will have far-reaching consequences for industry looking to rely on these rare and precious elements. So hold onto your hats, mate—we're careening headlong into an intricate web of geopolitics and advanced technology! Crikey!
- The high-stakes conversation between international economic powers in London primarily focused on enforcing a framework for trade, with specific emphasis on China's export restrictions for rare earth elements, essential for advanced technology production.
- The subject of rare earths has been a focal point in the broader trade negotiations between the United States and China, as diversification efforts by both parties and the impact of changes in export policies will significantly influence industries relying on these precious yet scarce minerals.
