The China Ministry of Commerce announced plans to process export applications for “controlled items,” signaling a potential shift in trade relations with the United States. This update comes in the wake of last week’s bilateral talks in Geneva on May 10. Throughout all these talks, both countries have expressed a shared desire to see the trade truce, cemented last week, hold fast.
A spokeswoman for the China Ministry of Commerce underscored their interest in expediting the review process. Specifically, they mentioned that the approval process for controlled items would be expedited. This statement is a notable step forward in the historic trade talks currently taking place between the two largest economies. The recent announcements are further evidence of each country’s commitment to continued cooperation and to maintaining open lines of communication. This commitment follows their joint meeting in London earlier this month.
The international discussions in Geneva were enough to produce a trade truce. This deal is an attempt to address the many, many trade issues that have festered in the US-China relationship for decades. Since the London meeting, US and Chinese officials seem to have been in constant contact. Their commitment to address all outstanding issues and re-establish confidence in their lucrative economic relationship is unshakable.
Most prominently, these discussions have centered on restarting rare earth exports. These materials are absolutely indispensable for a wide range of high-tech industries. US officials are hoping for a deal with China on these exports in the near future. This historic agreement would help advance the economic fortunes of both countries.
The Ministry of Commerce’s updates on the export applications for controlled items signal China’s willingness to enhance trade flows. This is a courageous and historic stand that can help defuse tensions and encourage better friendly competition and cooperation between the two countries. Rare earth elements are critical to the fabrication of numerous emerging and enabling technologies including electronics, defense applications, and renewable energy systems. This is a major milestone for global supply chains.
The bilateral talks and subsequent agreements reflect a mutual understanding that continued dialogue is essential for addressing complex trade dynamics. Both countries are busy putting bricks into place to make their trade truce more permanent. All stakeholders are optimistic that this moving forward will create a more sustainable economic partnership going forward.