3 main files at the heart of the dispute between America and China as the Trump-Xi summit approaches
US President Donald Trump identified 3 main files that represent the most prominent points of disagreement with China, namely rare earths, fentanyl, and soybeans, days before the two sides returned to the negotiating table and the fragile trade truce between the two countries approached.
Trump said – in statements reported by Bloomberg Agency: American – He “does not want China to play the rare earths game with the United States,” referring to his previous threat to impose 100% customs duties on Chinese shipments after Beijing announced broad restrictions on the export of these minerals.
Trump added that the United States demands that China “stop fentanyl,” referring to his repeated accusations that Beijing does not curb Exporting this drug and its chemical components, which exacerbates the opioid crisis in the United States, stressing the need for China to resume purchasing American soybeans, describing the three files as “very normal matters.”
US Treasury Secretary Scott Besent said that the United States and China will hold new talks this week in Malaysia, after his virtual meeting, last Friday, with Vice President Chinese Minister Hei Feng, whose talks were described by the Chinese media as a “constructive exchange of opinions.”
Trump had threatened more than a week ago to cancel his upcoming meeting with Chinese President Xi Jinping, the first between them since his return to the White House, in protest against Beijing’s intention to impose comprehensive restrictions on exports of rare earths, and at the same time announced the imposition of tariffs. An additional 100% import of Chinese goods as of November 1, which threatens to end the trade truce scheduled to end next November 10 unless it is extended.
In recent weeks, the state of relative stability that prevailed in US-Chinese relations collapsed after Washington expanded its technological restrictions and proposed imposing duties on Chinese ships coming to US ports, and Beijing responded with measures. Similar ones include tightening controls on the export of rare metals and other vital materials.
When Trump was asked in an interview with Fox News yesterday, Sunday, about his recent threat to impose new tariffs on Chinese goods, he said that “the tariffs are not sustainable, but they can remain in place,” stressing at the same time that he maintains a good relationship with the president. The Chinese man is expected to meet him soon in South Korea on the sidelines of the Asia-Pacific Economic Cooperation Forum summit, adding: “I think we will be fine with China, but we have to get a fair agreement. It must be fair.”
Soybeans are one of the most prominent mutual pressure tools in the trade dispute between the two countries, as last year China bought $12.6 billion worth of soybeans. The US, but did not buy any quantities this year, heading instead to suppliers in South America.
The state of frustration has escalated among American farmers, who constitute a basic support base for Trump, as they face difficulties in storing unsold soybeans and falling prices, while they wait for delayed government aid due to the government closure.
And last August, he called for Trump ordered China to quadruple its purchases of American soybeans, but last week he expressed his dissatisfaction with this not happening, threatening to stop importing cooking oils from China, which he accused of “deliberately harming our farmers.”
As for the fentanyl file, which represents one of the old points of contention, it is seen as a potential area for progress. Limited, although it still disturbs bilateral relations, and earlier in the year Trump had imposed 20% tariffs on all Chinese goods, justifying his decision due to the flow of illicit fentanyl into the United States, and these duties were added to what he called “liberation day tariffs.” In June, China tightened its controls on the export of two chemicals that can be used in the manufacture of this drug, but it repeatedly stressed that addressing the drug crisis is “an internal American responsibility.”
On the other hand, Beijing tried to allay fears of escalating restrictions on exports of rare metals, which are used in the manufacture of fighter planes, smartphones, and electric seats. For cars, to avoid negative international reactions.
During the annual meetings of the International Monetary Fund last week, the Chinese delegation informed its counterparts from various countries that the new restrictions will not affect the normal trade movement, according to what was reported by “Bloomberg” agency. According to unnamed informed sources.
Chinese officials explained that this step aims to build a “long-term mechanism” To deal with these sensitive resources, and that it came in response to what they described as “American provocations,” in reference to the expansion of American sanctions to include branches of Chinese companies listed on blacklists.
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