US-China Trade Talks Resume Amid Tech and Visa Disputes
London Summit Aims to Salvage Fragile Economic Truce
High-stakes trade negotiations between the United States and China began today in London, seeking to address escalating disagreements over technology exports, student visas, and rare earth materials that threaten to derail a recently established economic truce. The talks represent a critical attempt to stabilize the world’s two largest economies.
Tech Restrictions Fuel Tensions
The latest friction arose shortly after a 90-day pause in most tariffs was agreed upon in Geneva. The U.S. Commerce Department issued guidance suggesting that the use of Ascend AI chips from Huawei, a leading Chinese technology firm, could violate U.S. export controls. Officials believe these chips were developed using American technology despite restrictions on its export to China.
The Chinese government responded with strong disapproval, stating that the U.S. is hindering Chinese companies’ access to crucial technologies needed for semiconductor production. “The Chinese side urges the U.S. side to immediately correct its erroneous practices,” a Commerce Ministry spokesperson said.
Rare Earths and Export Controls
China’s control over the mining and processing of rare earths – essential for electric vehicles, robotics, and defense systems – adds another layer of complexity. In April, China began requiring licenses for the export of seven rare earth elements, causing concern among automakers worldwide. According to a recent report by the International Energy Agency, China currently controls approximately 70% of the world’s rare earth element processing capacity.
Donald Trump, speaking on social media, accused China of violating its agreement, stating, “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.”
However, the Chinese government has indicated it is addressing concerns, granting some export approvals.
Student Visas Add to Diplomatic Strain
A recent U.S. decision to revoke visas for some Chinese students, particularly those studying in fields deemed critical or with ties to the Chinese Communist Party, has further complicated the relationship. China’s Commerce Ministry raised this issue during discussions about the Geneva agreement, arguing that the U.S. actions undermine the spirit of cooperation. Marco Rubio stated in a May 28 statement that the United States would “aggressively revoke visas for Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields.”
More than 270,000 Chinese students studied in the U.S. during the 2023-24 academic year, representing a significant cultural and economic exchange.
With both sides facing domestic pressures and strategic concerns, the London talks represent a crucial test of whether a stable economic relationship can be maintained amidst growing geopolitical rivalry.
