Locator: 48704TRUMP.
Earlier today, I wrote:
CHINA-US trade:
- China desperately needs US ethane (plastics);
- US auto manufacturers need rare-earth-based magnets.
That's it.
Then a telephone call between Trump - Xi. Talks to continue. In London.
Then this, late today: link here.
China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers as supply chain disruptions begin to surface from Beijing’s export curbs on those materials.
At least some of the licenses are valid for six months. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck.
China’s decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.
I'm headed to bed. It's been a busy day.
The art of the deal.
We're going to need a musical interlude. Give me time.
With regard to China:
- it's all about balance-of-trade: in the big scheme of things, a very, very easy negotiating issue;
- Trump is eager to make a deal;
- China desperately needs a deal;
- western companies leaving China as fast as they can;
- bargaining chips:
- from China: rare-earth magnets for US car manufacturers
- from US: ethane
