Local time on June 11, the Wall Street Post cited知情 sources as reporting——
China agreed to resume issuing rare earth export licenses to American automakers and industrial enterprises, but the validity of these licenses is restricted to six months. In this way, if trade tensions flare up again, China will have leverage, while also increasing uncertainty for American industry.
The report stated that China's decision to temporarily resume issuing rare earth export licenses was one of the key breakthroughs achieved in this round of trade negotiations between the two countries.
According to insider information, in exchange, the United States agreed to ease restrictions on exports of aircraft engines and their components to China, as well as ethane (an essential component of natural gas for the chemical industry).
Based on this judgment, the London talks should have increased China's initiative. China has resumed issuing rare earth export licenses, but only for automakers and industrial enterprises, with a time limit of six months. Clearly, this does not include the military industry or weapons manufacturing. These are precisely what the United States urgently needs and wants. Grasping this point seizes the initiative; in future trade frictions, this will be leverage.
According to Trump's post, this round of talks was a great success. China has lifted the restrictions on rare earth export permits, the United States will no longer restrict Chinese students' study abroad visas, and it will also ease export restrictions on civilian aircraft engines and parts.
Clearly, the results of this round of talks were remarkable and successful, achieving the expected suspension or end of the trade standoff and stalemate, reaching the goal of mutual benefit. As the world's most important major powers, peace benefits both, while conflict harms both. The agreement reached in this round of talks once again verifies this unshakable rule.
Source: https://www.toutiao.com/article/1834700377793548/
Disclaimer: This article represents the views of the author alone.