A commercial agreement between the United States and China, signed in Geneva earlier this month, is threatened with collapse due to Chinese deceleration in the approval of strategic mineral exports, especially rare lands. The information is from the newspaper Wall Street Journal.
These materials are crucial for the manufacture of cars, chips and other technological products, and the delay in licensing has generated severe criticism from the US government.
The covenant, which provided for the suspension of rates for 90 days, was closed after intense negotiations between Chinese deputy premie He Lifeng and American representatives, including the Scott Bessent Treasury Secretary and commercial representative Jamieson Greer.
The Chinese concession to accelerate strategic mineral exports was a key point for the deal, but since then Beijing has delayed the process, generating distrust in Washington.
US President Donald Trump and his commercial representative publicly criticized China for not compromising the commitments, accusing the country of violating the agreement.
The tension increased after the US Department of Commerce issued a warning against the global use of Huawei’s artificial intelligence chips, which Beijing interpreted as a renewed aggression, making it even more difficult to advance negotiations.
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Meanwhile, American companies, especially automakers, warn that the delay in license release can cause production interruptions, with possible stoppages similar to those seen during the pandemic.
In response, the Trump government prepares an alternative plan for the trade war, including the hardening of export controls of technologies sensitive to China.
Despite the difficulties, Chinese authorities claim to be open to dialogue, but maintain firm posture regarding export control, considering the licensing system a strategic tool in commercial negotiations.
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With the conversations locked, analysts point out that the direct intervention of leaders Donald Trump and Xi Jinping may be necessary to unlock the impasse.
