Can US-China Talks Prevent a New Trade War Over Rare Earths?

Recent discussions between China and the US signal a potential thaw in trade tensions, as both nations seek to avoid a damaging tariff confrontation. The talks were prompted by China's new controls on its rare earths industry, which have escalated existing disputes.

In response, the US had considered imposing hefty tariffs, but both sides have expressed a willingness to negotiate. Meanwhile, China's Minister of Transport has urged the shipping sector to advocate for free trade amidst rising US protectionism, highlighting the escalating trade conflict.

This friction threatens to disrupt global supply chains and affect economic stability. As both countries grapple with their respective economic challenges, the international community watches closely, aware that the outcomes of these negotiations could have far-reaching implications.