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🇸🇬 Singapore /Economy & Trade

Rare Earths Deal Between US and China Remains in Effect, Official Says

From The Straits Times · (5h ago) English

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • A U.S. official stated that a rare earths deal between the United States and China remains in effect.
  • The official indicated that an extension of the deal would be announced at an appropriate time, with ongoing conversations.
  • President Trump and President Xi Jinping are scheduled to meet soon to discuss various issues, including trade and the rare earths agreement.

A senior U.S. official has provided clarity on the ongoing trade relationship between the United States and China, specifically regarding a crucial rare earths deal. According to the official, speaking to reporters on Sunday, the agreement is "still in effect" and has not yet expired. This statement comes ahead of a significant meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing.

The upcoming summit, scheduled for May 14-15, is expected to be a critical juncture for addressing several points of contention between the two global powers. Trade, Taiwan, and the U.S.-Israeli war on Iran are on the agenda, alongside the rare earths deal. The official expressed confidence that any potential extension of the rare earths agreement would be announced "at the appropriate time," suggesting that discussions are progressing, though the specifics of an extension remain to be finalized.

It's still in effect. It doesn't expire yet.

— U.S. officialThe official confirmed that the rare earths deal between the US and China is ongoing.

This news, reported by The Straits Times, highlights the complex and often delicate nature of U.S.-China trade relations. While the Trump administration has pursued a protectionist agenda, imposing tariffs and engaging in trade disputes, the continuation of the rare earths deal suggests a pragmatic approach in certain strategic sectors. Rare earths are vital components in numerous high-tech industries, including defense and electronics, making their supply chain a matter of national security for both countries.

From a regional perspective, the stability of this deal is closely watched. China currently dominates the global supply of rare earths, and any disruption could have significant economic repercussions worldwide. The U.S. official's statement aims to reassure markets and allies about the continuity of supply, even amidst broader trade tensions. The upcoming meeting between Trump and Xi will be crucial in determining the future trajectory of this relationship and other key bilateral issues.

I'm confident we'll announce any potential extension at the appropriate time.

— U.S. officialThe official expressed optimism about announcing an extension to the rare earths deal.
DistantNews Editorial

Originally published by The Straits Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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