Rare earths friction threatens to stall trade truce extension ahead of Xi-Trump summit
The US and China continue to wrangle over extending the 2025 Busan trade agreement just hours before Chinese President Xi Jinping arrives in Washington for a state visit, even as they report progress on implementing a narrow tariff-reduced trade mechanism. US Trade Representative Jamieson Greer on Monday blamed China for creating “uncertainty” over the pact’s extension, saying Beijing was still…
The US and China are at odds over extending the 2025 Busan trade agreement as Chinese President Xi Jinping prepares to visit Washington, despite progress on a limited tariff reduction mechanism. US Trade Representative Jamieson Greer accused China of causing "uncertainty" by limiting rare earth exports, stating that China still holds out on supplying enough strategic minerals to the United States.
Rare earth magnet shipments from China to the US decreased by 13% in August, although Beijing resumed some export approvals after negotiations. Greer expressed frustration, but noted that both sides desire the deal's extension, with the current deadline set for November 10. China's control over critical minerals, especially heavy rare earths used in defense systems, robotics, and electric vehicles, gives them a significant bargaining chip in trade discussions.
Beijing would prefer an extension covering the remainder of Trump's presidency, while Washington seeks a shorter-term deal. The summit convening September 24 is seen as an opportunity to finalize a deal before the deadline.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
