In the trade dispute with the USA, China had introduced drastic tariffs on rare earths. Companies in the EU were also affected. Representatives of the United States and China have now decided to relax.
According to both sides, China and the United States have agreed on the end of certain trade restrictions. In the interview of the financial news agency Bloomberg, US trade minister Howard Lutnick confirmed that the deal was signed with China. According to him, China will deliver rare earths and the United States will end its countermeasures for this.
As the Ministry of Commerce announced in Beijing, China will examine and approved applications for the export of “controlled goods”, which correspond to the provisions. In return, the United States would pick up a number of “restrictive measures” against China, it continued.
Trump does not give any details
U.S. President Donald Trump had said shortly before Lutnick’s confirmation that there was a signed agreement with China, but left many questions. “We only signed China yesterday,” said the Republican at an event in the White House. He did not explain what it was specifically. The sentence fell when Trump spoke to other countries about “Deals”. He also put it in the room that “maybe” a very big “deal” with India could be “.
The long -lasting trade conflict of the two largest economies USA and China keeps the global economy in suspense. In the meantime, Trump had increased punitive tariffs on imports from China to the USA in several steps to 145 percent. Beijing, in turn, had reacted with counter -tariffs of 125 percent and introduced export controls for industrially important rare earths and magnets made from them. China virtually holds a monopoly.
The United States had again issued restrictions on the export of important technology, such as software for computer chips and components for aviation, in which China is still dependent on foreign manufacturers.
Rare earths against high-tech goods
Due to China’s export restrictions on rare earths, industry was recently under significant pressure outside of the People’s Republic. Beijing’s measures concerned all countries, not just the USA. In Germany, too, companies in the automotive industry or in mechanical engineering are also concerned about the replenishment of important metals, which are installed, for example, for sensors or in electric motors.
China justified the controls with the fact that I am about goods for civilian, but also military use in the raw materials. It was heard from companies that the Chinese Ministry of Commerce takes a long time to process the applications without certainty on approval. Worries about possible still stands in production spread.
The Ministry of Commerce repeatedly emphasized that it had already approved applications for companies in the EU and wanted to accelerate the process.
