US and China will continue to talk about trade war on Monday

China and the United States will talk to each other again in London about their trade conflict on Monday. That made US President Donald Trump known On his favorite social media platform Truth Social. The conversation has not yet been confirmed from the Chinese side.

Both countries had already announced that the resumption of the conversations would take place soon. Trump and his Chinese colleague Xi Jinping Called that day for an hour and a halfthe first conversation between the two has been confirmed a few days before Trumps inauguration in January.

The two largest economies in the world have become engaged in a severe trade war in recent months. Trump blames China’s great trade surplus with the United States, and imposed high import duties on the country. China always answered it with the same rate. At the beginning of May the US raised a burden of 145 percent on import from China, which – as the American Minister of Finance Scott Bessent recognized last week – came down in practice on an embargo.

At a meeting between American and Chinese delegations last month in Geneva, both countries agreed for mutual levies for the time being suspendawaiting further negotiations. But that ceasefire seemed in danger last week when Trump accused of violating the agreements. The Americans were particularly angry about the limitations that China set for the output of rare earth metals and strong magnets.

That is a powerful weapon in the trade war for China, because those products are crucial for many industries, from defense and aviation to car manufacturing. Different Western car manufacturers had to stop the production of some models due to acute shortages last week.

According to Trump After his phone call with XI, there were no more questions about the complexity of rare earth metals, « although it was not clear what he meant by that. But on Friday Reuters reported that China would have issued export permits for Ford, General Motors and the American-European Stellantis, with head office in Hoofddorp, which makes cars for Jeep, Opel, Fiat and Citroën, among others.

Nuclear power stations

In the meantime, China blames Washington in turn, among other things, the many limitations on the export of advanced technological products, such as semiconductors. XI also made it to an official Chinese report From his telephone conversation with Trump, the restraint of Chinese students in the US. Last week the American Foreign Minister Marco Rubio announced that they wanted to withdraw ‘aggressive’ to their Visa, in particular that of students with ‘ties with the Communist Party’ and in ‘essential fields’.

As far as we know, Washington has not made any concessions in those areas. On Saturday, Reuters also reported that the US suspended the permits of a number of American companies to supply Chinese nuclear plants. Earlier, the output of aircraft engines and hydraulic liquids would have been stopped.

That the cold between the two countries is not nearly out of the blue, turntable Friday in Shanghai, where the American Chamber of Commerce held a reception on the occasion of its 110th anniversary. The American Consul Scott Walker said in a speech that the Chinese-American trade relations are « far too long » out of balance, and that the US « want to end the discriminatory actions and retaliations against American companies in China. » The next speaker, the local party officer Chen Jing, responded Knorrig. He called Walker’s comments « biased and unfounded. »

Europe

In the meantime, China says they make progress in conversations with the European Union about minimum prices for Chinese electric cars. Brussels laid it last year hefty import duties On, because Chinese manufacturers would offer their cars under the price of European competitors thanks to government subsidies. As a counter measure, China started an investigation into alleged dumping of European spirits, like Cognac. The outcome is expected next month.

China is also willing to accelerate the granting of permits for the export of rare earth metals to Europe, the Ministry of Trade said on Saturday. The issues were the subject of a conversation between the Chinese Handelsminister Wang Wentao and European Commissioner of Trade Maros Sefcovic on Tuesday.

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