China to continue rare earths flow: Trump

US President Donald Trump claims to have ended the “rare earths roadblock” after meeting with his Chinese counterpart Xi Jinping, in Busan, South Korea, Kallanish reports.

Although specific details are yet to be disclosed, and confirmed by Chinese officials, Trump described the 90-minute meeting with Xi as “a truly great meeting.”

“We agreed on many things, with others, even of high importance, being very close to resolved,” he writes on a social media post on Thursday. “China has agreed to continue the flow of rare earth, critical minerals, magnets, etc, openly and freely.”

He suggested the rare earths deal was a one-year agreement that would be renegotiated every year. However, it’s understood that China’s rare earth export restrictions still remain in place. The country requires export licences for rare earth elements, magnet products and related production equipment.

Additionally, the US President says Beijing agreed to purchase oil and gas from Alaska, soybeans and other farm products. He also says China will help the US end the “fentanyl crisis.”

Statements from China’s ministries of commerce and foreign affairs did not disclose specifics on the agreements. Instead, they emphasise that the heads of state “reached a consensus on resolving important economic and trade issues.” They add that officials should “finalise the follow-up steps as soon as possible, and ensure that the common understandings are effectively upheld and implemented, to inject confidence into the two countries as well as the global economy through solid deliverables.”

“Given our different national conditions, we do not always see eye to eye with each other, and it is normal for the two leading economies of the world to have friction now and then,” Xi told Trump in a televised greeting. “In the face of winds, waves and challenges, we should stay the right course, navigate through the complex landscape, and ensure the steady sailing forward of the giant ship of China-US relations. I am ready to continue working with you to build a solid foundation for China-US relations and create a sound atmosphere for the development of both countries.”

Earlier, in trade consultations in Kuala Lumpur, Malaysia, trade teams agreed that the US would remove the 10% fentanyl tariff imposed on Chinese goods, while the 24% equitable tariff imposed on Chinese goods would remain suspended for another year. China’s commerce ministry also says Beijing will adjust its countermeasures against these tariffs, and agreed to extend “certain tariff exclusions.”

Additionally, the US would suspend its 50% penetration rule on export controls for one year. The rule imposes additional export control sanctions on subsidiaries of companies listed on the US Entity List and other similar entities that hold more than 50% of the shares.

The US will also suspend its Section 301 investigations against China’s maritime, logistics and shipbuilding industries for one year. When this is in place, China will also halt its countermeasures against the US for another year.

“Both sides should take a long-term view and focus on the benefits of cooperation, rather than getting caught in a vicious cycle of mutual retaliation,” Xi is quoted as saying by the Chinese foreign affairs ministry.

On a more general summary, Beijing says the two presidents agreed to strengthen cooperation in areas such as trade, economy, and energy. Trump will visit China early next year and has invited Xi to visit the United States.

Source:Kallanish