America and China’s commercial truce did not solve the issue of “rare minerals with military use”

Two sources familiar with the detailed results of the commercial talks between the United States and China said that the commercial truce reached between the two sides in London did not address the export restrictions related to national security, to remain a conflict without a solution that threatens a broader agreement.

The two sources said that Beijing has not committed to granting permits to export some of the rare specialized magnetic minerals that the American military suppliers need to manufacture combat aircraft and missile systems, and the United States has kept the export restrictions on China’s purchases from advanced chips necessary for the field of artificial intelligence, due to concern that it has military uses as well.

In the London talks, last week, Chinese negotiators seemed to have progress on raising export restrictions on rare ground magnets with American restrictions imposed for a long time on the exports of the most advanced artificial intelligence chips to China.

This was a new turn in commercial conversations that started with the issue of the smuggling of opioid materials, customs duties and the trade surplus of China, but then turned into a focus on export controls.

The two sources said: «In addition, US officials indicated that they are looking forward to extending the current customs duties on China for another 90 days, after the date agreed on August 10, in Geneva, last month, which is likely not to reach a permanent trade agreement between the two largest economies in the world before that date.

The two sources, who spoke to “Reuters”, asked not to reveal their identity due to the rigor of the restrictions imposed by both sides on the disclosure of information, and the White House, the Ministry of Foreign Affairs or the Ministry of Commerce, so far, did not respond to requests for suspension, and the Chinese Foreign and Trade Ministries have not responded to requests for comment sent via fax.

President Donald Trump said last Wednesday that the agreement reached by the American and Chinese negotiators in London is “wonderful”, adding: “We have everything we need, and we will achieve very good results thanks to him, and we hope that they will do that as well.” The US Treasury Secretary, Scott Bessent, said that the agreement will not reduce the restrictions imposed on exporting advanced artificial intelligence chips in exchange for rare minerals. Chinese.

But the grip of the stifling China on the rare ground magnetic minerals needed for weapons systems remains a possible ignition between the two sides.

China dominates the global production of rare minerals, and has an effective monopoly monopoly.

A agreement reached, in Geneva, last month, to reduce bilateral customs duties from high levels in the category of hundreds due to the restrictions imposed by Beijing on vital metal exports in April, and this prompted the Trump administration to respond by imposing controls on exports to China, preventing shipments of semiconductor design, jet aircraft engines and other goods.