The Trump administration has reportedly suspended restrictions on technology exports to China, according to the Financial Times. This move aims to avoid harming ongoing trade talks with Beijing and mitigate the risk of Chinese retaliation, particularly concerning rare earth exports—critical minerals for high-tech manufacturing.
Chinese Vice Premier He Lifeng is currently in Sweden for trade talks with US Treasury Secretary Scott Bessent. The agenda includes discussions on US-China trade and economic relations, Chinese rare earth export controls, reciprocal market access, and overall trade rates. The suspension of tough measures by the US Department of Commerce reflects an effort to maintain positive momentum in negotiations and pave the way for a potential meeting between Trump and Chinese President Xi Jinping this year.
However, some current and former US officials indicated that the primary reason for suspending tariffs was fear of Chinese retaliatory measures, such as restrictions on rare metals and magnet exports, which could significantly impact American industries. This decision underscores the delicate balance of power in the ongoing trade war between the world’s two largest economies, which has seen reciprocal tariff impositions and reductions on several occasions.
