Trump-XI call is not enough to resolve a critical mineral deficit

Beijing-call between the US presidents and the Chinese president on Thursday will not yet resolve the global exports of rare land, which, according to enterprises, can stop the production of cars and other industrial parts this summer.

Rare land, along with a wider group of critical minerals, are used in weapons, cars and other high -tech products. China came to the dominance of mining and the production of these metals, and over the past two years gradually began to restrict international sales.

In early April, China announced a new export management on seven rare Earth elements. Unlike other measures Beijing did not specify whether they were the answer Until intensified tension in the US.

After both sides reached a breakthrough trading agreement on May 12, the Chinese Ministry of Commerce said on the same day that he had met Strengthen control over export to critical minerals. There was no wide lapel of restrictions on seven rare land.

This development came as a surprise to many in Washington, which waited for the abolition of restrictions on rare land, as the trade agreement stated that both countries suspend most tariffs and reject countermeasures for 90 days.

But so far, only some Chinese suppliers of US companies have received six months of export licenses on rare land, the US Chamber of Commerce in China said on Friday, citing a survey of members from May 23 to 28.

Among the respondents who suffered from control over rare earth, 75% said their existing deliveries would end within three months, the poll said. The poll showed

While China did not mention the rare land in its Chinese President’s reading Xi Jinping’s Call us president Donald TrumpThe long -awaited conversation reported that both countries would continue to talk, executing the allegations on both sides of violation of the trade agreement.

“I think we’re in very good shape with China and a trading deal,” ” Trump told reporters After the call on Thursday. “As you know, we are dealing with China, but we have straightened some points that should do mostly with rare land magnets and some other things.”

He did not specify. But Trump said US Finance Minister Scott Bavert, Secretary of Trade Howard Lutno and US Trade Representative Jamison Grir will meet with Chinese counterparts at indefinitely.

Further trade negotiations are likely to be cited by the United States and China to where they stood at the beginning of this year, with disabilities, the senior economist Jianwei XU said on Friday. He said China could accelerate some rare earth export statements for commercial use, in return for the United States, which reduce their restrictions on some technology exports to China.

“I think both China and the US have found out that the immediate weaknesses of each other are not so much in tariffs as more about non-tariff problems, especially in technology and rare lands,” SU said.

There are several European auto part companies Already had to stop productionAssociation of the branch The clip stated on Wednesday. In the coming weeks, he warned of broader influence, and said China approved only about 25% of “hundreds of applications for export licenses”.

Recently, China appears to facilitate control over exports, albeit in some European companies, the European Union Chamber of Commerce said on Friday. But he warned that it was not enough for many companies to “prevent serious deliveries.”

“Our members still still fight the process of approval of the export license, with the time required and the lack of transparency, and this is now a negative impact on the production lines in Europe and other countries,” said the President of the European Chamber Jens Eskelund.

Japanese automaker Suzuki Motor Short suspension of production of its quick car from -wit China’s rare curbs, Reuters report On Thursday, citing two unnamed sources, with the production, which is expected to partially recover on June 13. The SUZUKI MOTOR press -secretary was not immediately available for comment on CNBC.

“China’s export control measures are in line with universal practice. Such measures are not discriminatory or focused on any specific country,” said Chinese Foreign Ministry spokesman Lin Jian in response to a question about the Japanese carmaker on Thursday, the official English transcript reports.

This was repeated by the press secretary of the Ministry of Commerce, which he answered the question about Chinese companies that restrict the sale of a critical mineral stored outside the country in the Dutch port of Rotterdam last week.

During a separate press conference, she added that China will approve export licenses in accordance with its rules and “promoting convenient and compatible trade”. This is in accordance with the translation of the Chinese CNBC.

After control over exports in August 2023 on Galia and GermanyA year later, two metals used in the manufacturers, then announced similar restrictions on Exportsused in bullets, nuclear weapons and acid batteries. It can also strengthen other metals.

A few months later, China has released a broader policy This has strengthened restrictions on export exports that could use both civil and military use. Export Management covers metals such as tungsten that the US considered critical.

Wolfrom is almost the same as a diamondand used in weapons, semiconductors and industrial machines.

In the usual car there are about 300 grams (10.6 ounces) tungsten, most of which are lost even with processingsaid Martin Hotgner, market analyst in Austria Steel & Metal Market Research. As the supplies are low, it expects Western companies to be ending with tungsten this summer.

– Sam Mredite CNBC contributed to this report.