China said last week that it had held discussions with the United States to reduce their tariffs in a bid to ease tensions following Donald Trump’s recent visit. The Asian giant also pledged to take into account Washington’s “legitimate concerns” about rare earths, those crucial metals for modern industry whose exports Beijing, the world leader, controls.
Donald Trump had claimed, during his recent trip to China, the signing of “fantastic” bilateral trade deals, whose true nature is gradually being revealed on both sides. Tariffs, heavily used by the American president in his global trade war launched last year after his return to the White House, constitute one of the main disputes between Beijing and Washington because they weigh heavily on Chinese exporting companies.
“The two sides have in principle agreed to discuss a framework agreement providing for reciprocal tariff reductions on products valued at an equivalent amount,” covering “$30 billion or more on each side,” the Chinese Ministry of Commerce said in a statement. These discussions will take place within the framework of the new Trade Council, whose creation was announced last week.
Regarding the one-year truce reached in October during talks in Kuala Lumpur, the Chinese Ministry of Commerce said that “the trade teams will maintain close communication and consultations in order to extend the joint agreement.” Rare earths are also at the heart of the trade negotiations. The United States wants to secure its supplies of these metals essential to broad swaths of the global industry.
However, China remains indispensable for the time being. Export controls on its shipments, which it imposed last year in response to Washington’s trade war, have raised concerns among many American manufacturers dependent on this raw material. “The two sides will cooperate to examine and resolve each party’s legitimate concerns,” the Chinese Ministry of Commerce said, defending the legality of Chinese controls and promising that “compliant license requests intended for civil use will be reviewed.”
The ministry also confirmed that Beijing would buy 200 aircraft from Boeing, as announced at the Xi Jinping–Donald Trump summit last week—but without specifying the model or models involved.
