Washington: The United States and China have solved issues around the shipment of rare earth minerals and magnets to the US, Treasury Secretary Scott Besant said on Friday, ironing a dispute, which was a deal in May.
As part of its vengeance against the new American tariffs, China suspended the export of a wide range of significant minerals and magnets, which is central supply chain for automakers, aerospace manufacturers, semiconductor companies and military contractors worldwide.
During the US-China trade talks in Mayneva in May, Beijing committed to remove measures taken from April 2, but those important materials were not moving as fast as they agreed, Besent said in an interview with Fox Business Network, so the US put a countermessor in place.
“I now believe that we – as we agree, Magnets will flow,” Besent said.
Efforts to resolve the dispute included a phone call between US President Donald Trump and Chinese President Xi Jinping, which led to re -meetings of both sides in London, as the negotiators try to end a trade war between the world’s largest economies.
Trump said on Thursday, the United States signed an agreement with China on the previous day, but did not provide details.
A White House official said that the United States has reached an agreement with China how to accelerate rare earth shipment in America
“Administration and China agreed to an additional understanding for an infrastructure to implement the Geneva Agreement” that involves intensifying its shipment in the US, the official said on Thursday.
China’s Ministry of Commerce said on Friday that the two countries confirmed the details on the structure of implementing the consent of the Geneva trade negotiations. It said that China will approve the export applications of controlled goods according to law. It did not mention the rare earth.
According to an industry source, China has double usage restrictions on rare earth that takes “very seriously” and to ensure that buyers are dismissed to ensure that the material for American military uses has not been diverted. This has slowed down the licensing process.
Geneva’s deal stumbled on China’s curb on the export of significant minerals, inspiring the Trump administration to respond with the export control of semiconductor design software, aircraft and other items for China with export control of its own stop shipment.
In early June, Reuters reported that China had granted temporary export licenses to rare-earth suppliers of the top three American vehicle manufacturers, according to two sources familiar with the case, the supply chain began to disruption.
Later in the month, Trump stated that there was a deal with China in which Beijing Magnets and Rare Earth would supply minerals, while the US would allow Chinese students in its colleges and universities.
While the agreement shows the possible progress since the trade uncertainty and the months of disruption since the agreement took over in January, it outlines the long road ahead of a final, fixed trade deal between the two economic rivals.
