🇺🇸🇨🇳 U.S.-China trade tensions reignite over rare earths and Huawei ban.
The trade truce between the U.S. and China is at risk of collapse. The reason is that the Trump administration believes China is not fulfilling its commitment to expedite the export licensing of critical minerals such as rare earths.
A few weeks ago, the U.S. requested China to resume rare earth exports. In return, the U.S. would temporarily suspend tariffs for 90 days.
Chinese Vice Premier He Lifeng agreed to this request at the last minute during prolonged negotiations with U.S. Treasury Secretary Bessent and U.S. Trade Representative Greer in Geneva.
However, China then showed hesitation after the U.S. Department of Commerce unexpectedly issued a warning on May 12 about banning the use of Huawei's Ascend AI chips, which Beijing saw as a new provocative action from Washington.
