Trump-Xi call is not enough to solve the coins

BEIJING-The high risk invitation between American and Chinese presidents on Thursday was not resolved after a global shortage of rare land exports that companies say can stop the production of cars and other industrial parts this summer.

Rare land is used, along with a wider set of critical metals, in weapons, cars and other high -tech products. China has been dominating the mining and production of these minerals, and after the past two years gradually began to restrict international sales.

In early April, China announced new export controls on seven rare ground elements. Unlike other measures, Beijing did not specify if they were a response To increase American tensions.

After both sides reached their trade agreement on May 12, the Chinese Ministry of Trade said on the same day that it had held a meeting Enhancing export controls on critical minerals. There was no widespread decline in restrictions on seven rare land.

This development was a surprise to many in Washington, who expected to cancel the rare land restrictions, because the trade agreement has said that both countries would suspend most of the customs tariffs and the decline in counter -measures for 90 days.

But so far, the American Chamber of Commerce in China said on Friday that only some Chinese suppliers of American companies had received six -month export licenses for rare land.

The poll said that among the respondents affected by the elements of the rare land controls, 75 % said that their current supplies would be implemented within three months. The poll showed that the controls often affected the sectors that include research, development, resources, industrial and technology, but not consumer companies or services.

While China did not mention the rare land in its reading of the Chinese president Xi Jinping Call with the American President Donald TrumpThe long -awaited conversation indicated that both countries will continue to talk, after accusations on both sides of the violation of the commercial agreement.

“I think we are very good with China and the commercial deal,” Trump told reporters After a call Thursday. “We have a deal with China, as you know, but we were correcting some points that must be done mostly with rare land magnets and some other things.”

He did not explain. But Trump said that US Treasury Secretary Scott Beesen, Trade Secretary Howard Lootnick and American Trade Representative, Jameson Jarir, would meet their Chinese counterparts at an unlimited time.

Gianoy Show, the chief economist in Natxis, said on Friday that additional commercial talks are likely to restore the United States and China where things stand earlier this year, with a limited tariff. He said that China could accelerate some approvals to export the rare land for commercial use, in exchange for reducing its restrictions on some technology exports to China.

“I think that both China and the United States have discovered that the direct weaknesses of each other are not related to tariffs, but more about the advanced problems, especially in technology and rare land,” said Show.

Many European auto parts companies He had already stopped productionIndustry Association Kliba said on Wednesday. He warned of the most prevalent effect in the coming weeks, and China said only about 25 % of “hundreds of export license requests” that were submitted.

The European Union’s Chamber of Commerce in China said on Friday that China may recently reduce some export controls, albeit to some European companies. But she warned that it was not enough “to prevent severe supply chain disorders for many companies.”

“Our members are still struggling with the approval of the export license, because of the time it takes time and the lack of transparency, and this negatively affects the production lines in Europe and other countries,” Jenns Esclett, President of the European Chamber, said in a statement.

Japanese auto industry company Suzuki Motor The production of its rapid car was suspended due to the rare land restrictions in China, Reuters I mentioned Thursday, citing two unpopular sources, with the expectation of manufacturing in part on June 13. Suzuki’s spokesperson was not immediately available for suspension when calling him by CNBC.

In response to a question about the Japanese auto company on Thursday, Lin Jian, a spokesman for the Foreign Ministry of Foreign Affairs, said.

This spokesman for the Ministry of Commerce was the response of Young QIANG to a question last week about Chinese companies that restrict critical metal sales stored outside the country in Rotterdam Port in the Netherlands.

She added during a separate press conference on Thursday that China will agree to export licensing requests in line with its regulations, and “enhance comfortable and compatible trade.” This is according to the translation of CNBC for the Chinese.

After the export control elements in August 2023 on Galium and germaniumTwo minerals used in the chips industry, China, a year later, then announced similar restrictions on Antimon exportsWhich are used in lead, production of nuclear weapons and lead acid batteries. Other minerals can also be strengthened.

After a few months, China has released a broader policy The restrictions imposed on exports of products that could have civil and military use. Cover the elements of export export, such as Tungsten The United States has been considered critical.

Tingstin is difficult like diamondsIt is used in weapons, semiconductors and industrial cutting machines.

There are about 300 grams (10.6 ounces) of tungsten in the medium car, most of which are lost even with RecyclingMartin Hotawer, market analyst at Steel & Market Market, said, based in Austria, said Martin Hotawer, a market -based market analyst. As supplies are low, western companies are expected to run out of Tungstin later this summer.

Sam Merridhyth of CNBC contributed to this report.