U.S.-China customs accord specifics withheld by Beijing
Title: Hush-Hush on Trade: China withholds Export Tariff Details with the US
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China remains silent after US President Donald Trump's declaration of progress in relaxing exports barriers during the escalating trade war. Chinese Foreign Ministry spokesman Lin Jian in Beijing emphasized that both countries have made significant strides in resolving each other's economic and trading concerns. The People's Republic is optimistic they can collaborate to execute the consensus reached.
Regarding the export of precious rare earths, a spokesperson from the Ministry of Commerce in Beijing revealed that China would examine export permits according to the law. They've already granted some permits, with a plan to further enhance the application process.
Trump announced on his Truth Social platform that an agreement had been reached between the two powers to relax restrictions on rare earths exports. In his post, he mentioned that China had consented to supply certain raw materials, such as rare earths, to the US. In return, the US agreed to keep allowing Chinese students to study at American universities.
Trump also wrote that there was an agreement between the world's two largest economies regarding tariffs. If confirmed, US tariffs on Chinese imports would amount to 55 percent, while China would impose retaliatory duties of 10 percent on US goods, according to Trump. Negotiators from both countries met in London on Monday and Tuesday. Following the meeting, envoys from Beijing and Washington revealed their intention to implement the consensus reached in Geneva in mid-May.
In Switzerland, China and the US had agreed at the time to decrease their mutual import tariffs by 115 percentage points and granted themselves a 90-day ceasefire for further negotiations. The details of the Geneva agreement and the London understanding are still unclear. US Trade Minister Howard Lutnick indicated in London that a written version of the package would not be disclosed. Some analysts pointed out that the negotiations merely returned both countries to their status quo ante.
In essence, the Geneva Agreement and the London Understanding are not standard terms used in recent trade arrangements between China and the US. However, various significant advancements have occurred in their trade conflict, including the signing of the Phase One Economic and Trade Agreement in January 2020. Key aspects of this agreement included China's promise to increase US goods and services purchases by at least $200 billion over two years, accompanied by reduced tariffs on some Chinese goods by the US. Nonetheless, substantial tariffs persist on both sides. Additionally, the agreement covered broader commodity categories but did not specifically address rare earths.
China has traditionally dominated the global rare earth market. Regardless of any specific agreements on rare earth exports within the US-China trade conflict, China has leveraged its production of rare earths in geopolitical negotiations. Current tensions between the two countries continue over various trade matters, such as tariffs and market access, despite the Phase One agreement.
For the latest information, users are advised to consult recent news sources or official statements from the US Trade Representative's office or China's Ministry of Commerce.
- In the ongoing trade negotiations between China and the US, it remains crucial for both the community policy and business sectors to understand the implications of the Geneva Agreement and the London Understanding, particularly in relation to employment policies, as these agreements could significantly impact employment opportunities due to changes in finance, politics, and general-news.
- As China continues to dominate the global rare earth market and uses its production of these materials in geopolitical negotiations, it is essential for various sectors, including employment policy, finance, business, politics, and general-news, to closely monitor any updates regarding China's employment of rare earth exports as a leverage point in their ongoing trade relations with the US.
