Trade Tensions: U. S. and China Meet in Malaysia to Avoid Economic Showdown

Objective: Prevent worsening of trade war, ensure smooth Trump-Xi meeting.

Key Details

• Location: Kuala Lumpur, Malaysia
• Date: Saturday
• Round: Fifth since May

Focus Areas

• Rare Earth Minerals & Magnets: Crucial for advanced manufacturing
• China's Leverage: Control over rare earth supplies
• U.S. Concerns: Potential impact on electric vehicles, semiconductors, weapons systems

Background

Timeline of Events

• April: Trump imposes new tariffs on Chinese imports
• China's Response: Cuts off rare earth supplies to U.S. buyers
• May: First meeting in Geneva results in a 90-day truce
• Subsequent Meetings: London, Stockholm, Madrid
• Outcome: Deal on Chinese app TikTok

Recent Developments

• Truce Breakdown: U.S. expands export blacklist
• China's Retaliation: New global rare earth export controls
• U.S. Criticism: "Global supply chain power grab"
• Potential U.S. Action: Further export curbs on software-powered goods

Current Challenges

• Negotiation Goal: Return to previous status quo
• Potential Consequences: Cancellation of Trump-Xi meeting in South Korea
• U.S. Priority: Resume soybean purchases by China
• Unlikely Topics: Core U.S. complaints about China's export-driven economic model