Trade Talks Between U.S. and China Start Today. Here’s What To Know

Monday’s US-China business talks can be much higher than just tariffs.

Officials of the US and China met on Monday to discuss trade in London, which could be a de-size of trade war between the world’s two largest economies. Dialogue is likely to cover rare earth metals and other flashpoints.

National Economic Council Director Kevin Haset said that a goal of dialogue was to achieve the restrictions on rare earth exports to China. In April, China banned the high point of trade tension between the two countries. China controls the world’s rare earth minerals such as Neodimium and Terbium supply, which is used in the manufacture of electric cars, drones, and advanced electronics.

Haset said about CBS, “We want rare earth – which are important for magnet cell phones and everything else – as they did before the beginning of April, and we don’t want any technical details to slow down.” Facing nation In the weekend.

The US industry has been given a tough competition by China’s rare earth export sanctions. Reuters reported last week that many American vehicle manufacturers are reducing and stopping the production of some vehicles.

Protecting rare Earth’s sources has been a major goal of Trump’s foreign policy during his tenure. Trump has cited Greenland’s access to the rare Earth as justification for “acquisition”, and signed an agreement with Ukraine last month, giving us preference treatment to companies in rare earth deposits in the war -torn nation.

Dialogue can also cover other issues, including high imports that the two countries have imposed on each other.

The US suspended some of its highest tariffs against China, which was more than 145% in April, allowing to interact for 90 days. The break ends in August. Meanwhile, the two countries still have high tariffs on each other.

By combining various tariffs, the US charges an average tariff of 51% against Chinese products, and China has been calculated in the US in May in the middle of the Peterson Institute for International Economics.

In the result of the dialogue, the two countries may have major implications for the trajectory of the economy in both countries, and for American consumers, which may withstand a decrease or steep price increase for many products made in China if business war increases.