The United States and China are in the process of negotiating to reduce trade and economic tensions. Here are some important updates on the relationship between the two countries:
- *Trade negotiations*: Top negotiators from the United States and China have met in London to discuss reducing tensions surrounding China's dominance in the field of precious rare earth minerals.
- *Trade tensions*: Bilateral relations have significantly worsened since President Donald Trump returned to the White House, creating a wave of widespread instability in the global business and investment community.
- *Geneva agreement*: Both sides have accused each other of violating the agreement made in Geneva last May. However, in a recent phone call, Trump and Xi Jinping expressed optimism about the relationship between the two countries.
- *Rare earth exports*: China has approved several applications for rare earth exports, although it did not specify which countries or industries would benefit.
- *Time pressure*: Trump's postponement of tariffs on Chinese goods will expire in August unless he decides to extend it.
Some key issues in the dispute between the United States and China include ¹:
- *Sharp reduction in rare earth magnet shipments*: The United States complains about the sharp reduction in shipments of rare earth magnets, essential materials for the electric vehicle industry and the U.S. defense system.
- *Tightening restrictions on artificial intelligence chips*: China has expressed frustration with Washington's tightening restrictions on artificial intelligence chips from Huawei Technologies Co. and limiting access to other advanced technologies.
