A fragile truce as glow

Containers accumulate at the Tikang Port container station in Socho, Jiangsu Province, China, on May 18, 2025.

Norfuto Norfuto Gety pictures

This report from CNBC newsletter in CNBC for this week, which brings you visions and analyzes about what leads the second largest economy in the world. Every week, we will explore the largest business stories in China, and make a decrease in market movements and help you prepare for the next week. Like what you see? You can subscribe here.

The big story

Just one week after the penetration of trade tensions between the United States of China, none of the parties could be confident that the other keeps the end of the deal.

“These 90 days will not be smooth,” Liu Widong, a research colleague at the State of the State Ten, told the Chinese Academy of American Studies for American Studies this week. This is according to the translation of CNBC for his statements in Mandarin.

It is expected to rise in uncertainty and smaller steps in the next, given a major penetration, as both the United States and China are trying to feel others towards central Earth.

The positions have already started.

On Wednesday, the Chinese Ministry of Commerce warned that it would take legal measures against the participants in helping or implement measures to reduce the use of semiconductor -sectarian conductors from China.

A previous accusation by the ministry itself on Monday is blamed for the United States Outing commercial conversations With a warning from the Huawei chip last week – although the American Industry and Security Office is actually Reduce He rejected the Biden era plan more restricted to chips.

Many in the United States are also concerned that China is not Relax the rare land export controlsAnother field in which China dominates the supply chain. This is despite the mysterious description of the common statement of how “China”Comment or remove non -common anti -measures It has been taken against the United States since April 2, 2025. “

“I think Washington expected export controls to be reduced to that group of rare land, allowing exports in a relatively uncompromising manner,” said Scott Kennedy, chief adviser in the field of Chinese business and economics at the Center for Strategic and International Studies in Washington, DC, said.

“If it turns out that this is not the result, the United States will conclude that China violates the agreement,” he said. “We can see repair sooner, not later.”

While the White House has not yet responded to CNBC’s request for comment, a step back reveals mystery by China.

But does the export of rare land dominate part of China’s anti -definition measures? This is for discussion. April 4 document from the Chinese Ministry of Commerce and the customs agency announces Export controls He did not describe it explicitly.

While China stopped restrictions on 28 American entities that were slated Export controls on critical mineralsand The ministry has I made several general data about Enhancing export controls On critical minerals.

“Given the comprehensive and competitive nature of bilateral relations, the current truce – while focusing on trade – can easily be undermined by export controls,” said Uy Soo expert, China, in the Economic Intelligence Unit.

“While rhetorical positions are unlikely to undermine the 90 -day truce, China may re -calibrate the export control system in response to American actions,” she said.

Chinese Ministry of Commerce Also announced on Sunday Duties up to 74.9 % On geometric plastic imports from the United States, Europe, Japan and Taiwan.

Trump-XI talk?

US President Donald Trump said last week to Fox News he was Open a call With Chinese President Xi Jinping, or Even a journey To China. But Beijing No hints fell.

“I will be surprised if the step in the middle of these issues is now very unclear,” Kennedy said.

The new American ambassador to China, David Berdo arrived in Beijing On Thursday, a little more than two weeks after being The Senate confirmed. He was the former president of Asia to the Consumer Consumer Company, Sarah Lee.

One of Berdo’s first social media publications called for “strong measures” on fentanel. He said on X, along with commercial actor Jameson Jarir, they were.Involved On the steps following to stop this dangerous situation. “

The United States left its place 20 % in definitions It was imposed earlier this year on the alleged role of China in the Vintanel crisis.

The joint statement said last week that the United States and China will create a mechanism for talks on economic and commercial relations, but neither of the two parties was specified when the next party happens.

Liu, who helped compose a report in February Carter Center on Bilateral CooperationHe emphasized the general focus of the current talks is trade rather than technology. China is expected to finally agree to purchase more American agricultural and energy products – given the perception Presse on farmers can influence Trump.

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You need to know

In the market

The performance of the Shanghai complex during the past year.

Chinese stocks and Hong Kong climbed Wednesday.

China’s main mainland CSI 300 It rose 0.68 % while Hong Kong Hang Singh Fahress – Which includes major Chinese companies – increased by 0.53 % from 12 pm local time.