 "Representational image: REUTERS")
The Chinese Ministry of Commerce has said that Beijing would suspend some export control measures that exacerbated the tariff war between the US and China. The announcement follows President Donald Trump and President Xi Jinping’s meeting in Busan, South Korea.
According to Global Times, the MOFCOM said, “The US will suspend for one year the implementation of a new rule announced on Sept 29 that expands its “entity-list” export restrictions to any entity that is at least 50% owned by one or more entities on the list. China will suspend the implementation of relevant export control measures announced on Oct 9 for one year and will study and refine specific plans."
This also comes after Trump announced that Washington would be slashing tariffs on China by 10 per cent, from 57 per cent to 47 per cent, after he held an “amazing” meeting with Xi, the first between the two leaders in two years.
The tariff war
Earlier this month, Trump threatened to impose an additional 100 per cent tariff on China, accusing Beijing of taking an “extraordinarily aggressive position on trade”.
The US president’s actions came in response to China’s announcement that it would expand its rare earths export controls, adding five new elements and extra scrutiny for semiconductor users as Beijing tightens control over the sector.
The world’s largest rare earths producer added dozens of pieces of refining technology to its control list and announced rules that will require compliance from foreign rare earth producers who use Chinese materials.
China produces over 90 per cent of the world’s processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars.
Impact Shorts
More ShortsExports of 12 of them are now restricted after the ministry added five - holmium, erbium, thulium, europium and ytterbium - along with related materials.
Putin-Trump meeting
Trump and Xi met on Thursday at a high-stakes meeting in South Korea, where the two leaders acknowledged differences but hoped to strengthen their relationship in the future. Following an “amazing” meeting with Xi, Trump announced that he will lower tariffs on China.
“We have a great relationship. Xi is a tough negotiator,” Trump said, adding that the two countries will have “fantastic” ties from now.
Trump and his Chinese counterpart, Xi Jinping, met on Thursday at a high-stakes meeting in South Korea, where the two leaders acknowledged differences but hoped to strengthen their relationship in the future. Following an “amazing” meeting with Xi, Trump announced that he will lower tariffs on China.
“We have a great relationship. Xi is a tough negotiator,” Trump said, adding that the two countries will have “fantastic” ties from now.