Commercial dispute escalated: United States and China negotiate in London!

Commercial dispute escalated: United States and China negotiate in London!

In the middle of the tense trade relationships between the United States and China, a new round of talks has taken place in London today, which aims to defuse the conflict. High-ranking representatives of both countries took part in this meeting, which is based on a phone call between US President Donald Trump and the Chinese state and party leader Xi Jinping. Vice Prime Minister He Lifeng was represented on the Chinese side, while the United States was represented by Finance Minister Scott Bessent, Minister of Commerce Howard Lutnick and trade officer Jamieson Greer.

The topics that were on the agenda were particularly about the American restrictions for the sale of essential technology products to China and Beijing's export controls of rare earths. There is currently a special focus on this area, since China controls about 61% of the global production of rare earths that are indispensable for modern technologies. These raw materials can be found in a variety of products, including smartphones and military equipment.

The role of rare earth in the trade conflict

China recently restricted the export of seven strategically important, rare rare earths, which further exacerbates the tensions between the two nations. These export restrictions not only lead to delays in the supply chain, but could also increase the prices for rare earths considerably. Technology companies such as Tesla in particular are already affected by these measures because they rely on these raw materials to manufacture their products. Elon Musk even indicated that this could negatively influence the development of the Tesla Optimus robot, since China wants to ensure that the components are not used for military purposes.

The importance of rare earth in modern technology makes it a geopolitical pressure medium that China uses in the trade war with the United States. At the same time, the United States is trying to reduce its dependence on these raw materials by promoting domestic production and looking for alternative suppliers.

trade balance and tariffs

The trade conflict also has serious effects on the economic relationship between the two countries. The United States has temporarily increased punitive tariffs on imports from China up to 145 percent, while China reacted with counter -tariffs of up to 125 percent. The conflict also leaves a significant trade deficit from the United States to China, which amounts to almost $ 300 billion. Trump pursues the goal of reducing this deficit through higher tariffs and strengthening domestic production.

economic analysts warn that higher import fees could have negative effects on prices and economic growth. The legality of the numerous tariffs is currently being checked in various legal processes, although Trump does not hesitate to take all possible measures, including a dispute before the Supreme Court.

Overall, the trade conflict between the USA and China remains a central topic with far -reaching consequences for the global economy, in particular due to the dependence on rare earths and the strategy of both countries in dealing with technological and economic challenges.

For more information about this area, you can report the reporting at Manager magazine and Kapitalcheck Read.