President Donald Trump has suggested the possibility of withdrawing from an anticipated meeting with Chinese President Xi Jinping, following China’s recent restrictions on the export of rare earth materials. In a social media post, Trump expressed that he sees “no reason” to hold the meeting, citing increased hostility from China and alleging that the nation is attempting to exert control over the global market.
Trump also indicated that a significant hike in tariffs on Chinese goods may be forthcoming, signaling a potential escalation in trade tensions between the United States and China. In response to these remarks, financial markets reacted negatively, with the S&P 500 index experiencing a decline of approximately 1.4% during late morning trading in New York.
China’s recent actions involve not only tightening rules on rare earth exports but also launching a monopoly investigation into the U.S. technology firm Qualcomm, which could impede its acquisition of another chip manufacturer. Additionally, China plans to implement new port fees targeting vessels associated with the U.S., including those owned or operated by American companies.
The relationship between the U.S. and China has been precarious since May, when both countries agreed to suspend previously imposed high tariffs that had severely impacted trade. Since then, officials from both nations have engaged in discussions on various issues, including TikTok, agricultural imports, and the trade of advanced technologies. Rare earth elements, supplied by China, play a crucial role in the production of numerous items, including automobiles and smartphones.
Source: https://www.bbc.com/news/articles/cn4wkd7729po?at_medium=RSS&at_campaign=rss