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 United States and China remain at odds over extending the 2025 Busan trade agreement just ahead of Chinese President Xi Jinping's visit to Washington. Despite reporting progress in implementing a narrow tariff-reduced trade mechanism, US Trade Representative Jamie Greer accused China of creating uncertainty by not supplying enough strategic mineral exports.
Greer noted that China controls a significant portion of the world's rare earth processing capacity, which has led to a 13% decrease in rare earth magnet shipments to the US in August. The US and China have reportedly been engaged in discussions to extend the Busan deal, which is set to expire on November 10, but Greer does not expect an announcement this week.
Sources suggest the US administration prefers a three to six-month extension, whereas Beijing would opt for a longer-term deal. The agreement, which was signed in October 2019, aimed to alleviate trade tensions following Trump's "Liberation Day" tariffs in April 2020. It included measures such as lowering US tariffs on some Chinese goods, suspending additional restrictions on Chinese-affiliated companies, and securing Chinese commitments on US soybeans and fentanyl precursors.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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