Trump says Xi will relinquish rare earths; trade talks set for Monday in London

President Trump says Chinese President Xi Jinping agreed to restart the flow of rare earth minerals that are a critical piece of trade negotiations between the world’s largest economies.

Mr. Trump confirmed the resumption of exports when asked if Mr. Xi had committed ahead of high-level talks in London on Monday.
“Yes, he did,” Mr. Trump told reporters en route to a weekend stay at his club in Bedminster, New Jersey.

China produces most of the world’s supply of rare earth minerals used in electric vehicles, weapons systems and semiconductors. The seven rare earths are samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.

The minerals have become a bargaining chip in trade talks between the U.S. and China.

The U.S. side said Beijing was slow-walking permits to export the minerals to American companies. China, meanwhile, complained about the Trump administration’s export controls on semiconductors and revocation of Chinese students’ visas at U.S. colleges.

Unlike other countries that came to the negotiating table, China retaliated against Mr. Trump’s “Liberation Day” tariffs by imposing hefty levies on U.S. goods in April, sparking a trade war.

A de-escalation meeting in May knocked down sky-high tariffs from both sides. The U.S. is charging a 30% tariff on Chinese goods, and China is putting a 10% tariff on American goods that cross its borders.

Now, both sides are trying to resolve deeper trade tensions.

Mr. Trump and Mr. Xi held a lengthy call on Thursday, and the leaders agreed to send trade delegations to the U.K. to resume talks.

Beijing wants Washington to drop its tariffs on Chinese goods and export controls on semiconductors, while Washington wants China to open up its markets and correct trade practices it views as unfair.

China appears to be softening its stance on rare earths ahead of the London talks. 

The Chinese Commerce Ministry on Saturday said it “approved a certain number of compliant applications in accordance with the law and will continue to strengthen the approval of compliant applications.”

It didn’t specify the countries that received the approvals. 

Beyond Mr. Trump’s assertion about rare earths, a Chinese commerce spokesperson said Beijing established a channel to “speed up” the approval process for companies in the European Union.