On June 9, the second round of US-China trade talks will start in London, the key topic of which will be Beijing's restrictions on exports of rare earths. These measures were introduced by China in April in response to the harsh tariffs imposed by Washington. The supply of strategic materials critical to the high-tech and defense industries of the United States has been threatened.
The Chinese delegation, led by Vice Premier He Lifeng, insists on lifting some of the US tariffs and easing export controls. On the American side, Treasury Secretary Scott Bessent, Commerce Secretary Howard Latnick and Chief Trade Representative Jamison Greer are participating in the negotiations. According to The New York Times, the White House is ready to make a number of concessions in order to regain access to resources controlled almost monopolistically by China.
Rare earth metals play a crucial role in the production of electronics, batteries, navigation systems, and rocket technology. At the same time, China provides up to 99% of the global market for their individual species. Experts warn that prolonged export restrictions could cripple the work of American companies, including defense contractors.
