Speedy Agreement on Trade Talks: What Trump's Economic Advisor Expects
Anticipate Progress in Customs Discussions Among Trump's Advisors
Get ready for a swift move in the trade negotiations between the US and China, according to Kevin Hassett, the economic advisor to President Donald Trump. "I'm betting on a short meeting with a firm handshake," Hassett shared with CNBC. The primary focus is securing a fundamental agreement, particularly concerning rare earths.
Rare earths are crucial as China controls around 90% of the global market for these rare minerals and specific magnetic materials. Hassett elaborated that the US government assumes Beijing will loosen export restrictions post-agreement, leading to the US also relaxing its export controls.
The anticipated meeting in London is aimed at making headway in this prolonged trade conflict. Chinese Vice-Premier He Lifeng will attend, while US President Trump announced Treasury Secretary Steven Mnuchin would be part of the American delegation. Initial details about the location, time, or agenda were scarce. A possible continuation of talks on Tuesday is on the table.
Behind the Scenes
The strategic importance of rare earths in technology and defense industries has made them a hot topic in U.S.-China trade relations. While a quick breakthrough is yet to be witnessed in recent news, the discussions surrounding rare earths remainsignificant. Here's a snapshot of the current situation:
Recent Developments
- Diversification Attempts: Countries including the US, Australia, and Canada are striving to decrease reliance on Chinese rare earth supplies by exploring new mining projects and refining facilities.
- Technological Innovations: Companies are also investing in technologies that minimize the need for rare earths in various products. For instance, advancements in magnet technologies aim to slash the demand for neodymium and dysprosium, critical rare earths used in electronics and clean energy technology.
- Ongoing Trade Negotiations: Although no specific recent breakthroughs regarding rare earths have been announced, ongoing trade talks between the US and China might revolve around rare earths, alongside tariffs, market access, and supply chain security.
- Geopolitical Factors: The geopolitical landscape around rare earths is intricate. China's dominance in the supply chain has raised concerns about security and stability, leading other nations to seek alternative sources.
In Brief
- Rare Earth Elements (REEs): A group of 17 metallic elements with a wide range of high-tech applications, including electronics, renewable energy technologies, and military hardware.
- China's Control: Historically, China dominated rare earth production, but other countries have been ramping up their production capacity in recent years.
- US and Allies' Strategies: The US and its allies are focusing on establishing their own rare earth supply chains by investing in mining and processing capabilities outside of China.
Keep an eye on news releases from government agencies, trade organizations, and industry reports for the latest updates on negotiations and developments in the rare earth sector. These sources typically provide in-depth insights into ongoing trends and happenings in the rare earth industry.
- The Commission, amid ongoing trade talks between the US and China, might consider adopting a proposal for a directive on the protection of workers from the risks related to exposure to carcinogens, particularly considering the crucial role of finance in business and politics, and the general news surrounding rare earths and their significance in technology and defense industries.
- Amid the anticipated meeting in London, stakeholders from the finance, business, politics, and general-news sectors should carefully monitor the discussions on rare earths and their export restrictions, as their relaxation could potentially impact the global market for these rare minerals and specific magnetic materials, and consequently, the economy and security of various nations.
