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What is at stake in the American-Chinese trade discussions in London

Rana Adam by Rana Adam
June 8, 2025
in USA
0

Beijing (AP) – US -Chinese trade discussions in London should resume a series of new disputes that have shaken relations, threatening a fragile truce on prices.

The two parties agreed in Geneva last month to a 90 -day suspension of most 100%prices. Fears of the recession.

Since then, the United States and China have exchanged words angry with advanced semiconductors that have fueled artificial intelligence, the “rare earths” which are vital for car manufacturers and other industries, and Visas for Chinese students in American universities.

President Donald Trump speaking The Chinese leader Xi Jinping by phone last Thursday to try to put relations on the right track. Trump announced on social networks the next day that trade discussions would be detained Monday in London.

Technology is a major bonding point

The last frictions started one day after the May 12 announcement of the Geneva Agreement to “take a break” of the prices for 90 days.

The US trade department has published advice indicating the use of Ascend AI fleas from HuaweiA main Chinese technology business could violate American export controls. Indeed, the fleas have probably been developed with American technology despite restrictions on its export to China, according to directives.

The Chinese government It was not happy. One of its greatest oxen in recent years has been on American movements to limit Chinese business access to technology, and in particular the equipment and processes necessary to produce the most advanced semiconductors.

File - People visit a Huawei franchise store in Beijing on April 28, 2023. The Chinese Huawei technology giant on Friday August 11, said that its income increased by 3% more in the first half of 2023 and its beneficiary margin has extended despite the sanctions that block access to American processor chips and other technologies. (AP photo / ng han guan, file)

People visit a Huawei franchise store in Beijing on April 28, 2023.

“The Chinese party urges the American part to immediately correct its erroneous practices,” said a spokesperson for the Ministry of Commerce.

The US Secretary of Commerce Howard Lutnick was not in Geneva but will join the talks in London. Analysts say that this suggests at least one will on the American side to hear China’s concerns on Export controls.

China shows signs of relieving themselves on rare earths

An area where China holds the upper hand is in the exploitation and treatment of rare. They are crucial not only for cars but also a range of other products, from robots to military equipment.

The Chinese government has started to demand that producers get a license to export seven rare earth elements in April. The resulting shortages have sent car manufacturers worldwide into a Tizzy. While stocks flowed, some feared to have to stop production.

Workers use machines to dig in a mine of rare earths in the county of Ganxian in the province of Jiangxi de la China Centrale on December 30, 2010. (Chinatopix via AP)

Workers use machines to dig in a mine of rare earths in the county of Ganxian in the province of Jiangxi de la China Centrale on December 30, 2010. (Chinatopix via AP)

Trump, without specifically mentioning rare earths, taken on social networks To attack China.

“The bad news is that China, perhaps not surprisingly for some, completely violated its agreement with us,” Trump published on May 30.

The Chinese government said on Saturday that it responded to concerns, which also come from European companies. A press release from the Ministry of Commerce said it had given approvals and “will continue to strengthen the approval of requests in accordance with regulations”.

The race to solve the problem of rare earths shows that China has a solid card to play if it wants to retaliate against prices or other measures.

Plan to revoke student visas Add to tensions

Student visas normally do not appear in commercial discussions, but An American announcement The fact that he would start to revoke the visas of some Chinese students has become another thorn in the relationship.

Chinese Ministry of Commerce raised the question When asked last week on the accusation that he had raped the consensus reached in Geneva.

He replied that the United States had undergone the agreement by issuing export control guidelines for AI fleas, stopping the sale of flea design software to China and saying that it would revoke Chinese student visas.

“The United States has unilaterally caused new economic and commercial friction,” the ministry said in a statement published on its website.

US Secretary of State Marco Rubio declared in a declaration of May 28 that the United States “would aggressively revoke visas for Chinese students, including those who have links with the Chinese Communist Party or are studying in critical fields.”

More than 270,000 Chinese students studied in the United States during the 2023-24 academic year.

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