US, China Economic Chiefs Hold Call on Rare Earths, Trade Ahead of September Summit

U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng engaged in a virtual discussion on Tuesday, addressing key economic and trade issues ahead of an anticipated summit between Presidents Joe Biden and Xi Jinping in September. The call, occurring roughly two months after the economic and trade dialogue between the two nations in May, aimed to coordinate agendas for the upcoming high-level meeting.

Secretary Yellen emphasized China's need to fully honor its commitments regarding rare earth supplies and U.S. agricultural purchases. U.S. officials have alleged that China has only partially fulfilled its obligations concerning rare earth exports agreed upon during a trade truce last November. Yellen also reportedly expressed dissatisfaction with China's adherence to its promise to purchase $17 billion worth of U.S. agricultural products annually from 2025 to 2028, separate from existing soybean purchase agreements.

“

I emphasized the need for China to fully implement its commitments regarding rare earths and U.S. agricultural purchases.

Conversely, Vice Premier He Lifeng conveyed China's "stern concerns" over recent U.S. trade restrictions. These include additional tariffs imposed on Chinese goods and the U.S. Federal Communications Commission's ban on importing new Chinese humanoid and four-legged robots, citing national security risks. China has demanded the immediate withdrawal of these measures, warning of potential retaliation if the U.S. persists.

The dialogue also touched upon the establishment of U.S.-China trade and investment committees, which were on the agenda during the May summit. Both nations have implemented retaliatory measures, with China recently placing U.S. rare earth companies and motor manufacturers on its export control list. This move was seen as a response to the U.S. adding Chinese companies, including BYD and Alibaba, to a list of firms potentially supporting the Chinese military. Despite these ongoing economic tensions, analysts anticipate that the overall level of confrontation will be managed carefully leading up to the Biden-Xi meeting.

“

Expressed stern concerns over recent U.S. economic and trade restrictive measures against China.