US and China Restart trade Talks, Hint at Easing Tech Export Restrictions
High-level economic discussions have begun between the United States and China in London, perhaps signaling a thaw in trade tensions. A White House official suggested the U.S. might relax certain technology export limitations, contingent on China increasing its rare earth mineral exports.
US Signals Easing of Tech Export Restrictions
Shortly after the talks commenced, a senior White House official indicated that the U.S. is considering easing some restrictions on technology exports to China. This move is reportedly linked to expectations that China will increase its exports of rare earth minerals to the American market.
High-Level Delegations Meet in London
the discussions involve prominent figures from both nations. The Chinese delegation is headed by Vice-Premier He Lifeng, while the U.S. team includes Treasury Secretary Scott Bessent, Commerce Secretary howard Lutnick, and Trade Representative Jamieson Greer, according to Xinhua news agency reports.
“Handshake” Deal Anticipated
Kevin Hassett, director of the National Economic Council at the White House, spoke with CNBC, outlining the U.S. expectations. Hassett stated that “immediately after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters.”
Potential Turning Point in US-China Relations
An agreement to ease controls on critical minerals and advanced technologies could represent a significant shift in the economic and technological rivalry between the two global powers. Such as, in 2023, trade between the U.S.and China amounted to $688 billion, highlighting the economic importance of their relationship (U.S. Census Bureau).
Concerns Over military Applications
In recent years, the U.S. has placed restrictions on China’s access to advanced technologies like semiconductors, artificial intelligence, and manufacturing, citing concerns about their potential use in bolstering China’s military capabilities.
When questioned about these concerns, Hassett clarified: “It depends, like the very, very high end Nvidia stuff is not what I’m talking about. I’m talking about possible export controls on other semiconductors, which are also very important to them”.