Bloomberg reported today (June 10) citing U.S. officials that the first day of trade talks between the U.S. and China in London lasted more than six hours, and the talks will resume at 10 a.m. on Tuesday. The U.S. hinted that it is willing to lift export controls on certain technologies in exchange for China easing restrictions on rare earth exports. It is understood that the U.S. government plans to lift recent restrictions on chip design software, aircraft engine parts, chemicals, and nuclear materials. White House National Economic Council Director Kudlow Hassett said that the U.S. government expects that after the negotiations, China will release a large amount of rare earth resources, and the U.S. will also ease export controls, but this will not include Nvidia's most advanced artificial intelligence chips. Comment: Rare earths play an indispensable role in high-end manufacturing, especially in the defense industry. Things like missile, fighter jet, and smart bomb production all rely on specific rare earth elements. The U.S. has long been dependent on China for rare earth supplies, and China's recent tightening of rare earth export controls has put pressure on industries such as the U.S. defense sector. For example, The New York Times reported that the U.S. has not found an alternative source for "samarium" in over a decade, and "samarium" has been listed by China as an export-controlled item. Each F-35 fighter jet requires approximately 23 kilograms of samarium magnets, which makes the U.S. eager to negotiate to ensure rare earth supplies. The U.S. appears to be making concessions by preparing to lift restrictions on chip design software, aircraft engine parts, chemicals, and nuclear materials. However, upon closer analysis, these restrictions were originally unilateral trade barriers set up by the U.S., which to some extent hindered normal trade and technological exchanges between China and the U.S. Lifting these restrictions now is actually a reflection of market demand and the principle of fair trade. Nevertheless, the U.S. clearly stated that it will not include export controls on Nvidia's most advanced artificial intelligence chips, highlighting its intention to maintain a technical advantage and containment posture towards China in key core technologies. For China, rare earths are an important strategic resource, and reasonable control over exports is a necessary measure to safeguard its own resource security and industrial interests. In trade negotiations, China needs to comprehensively evaluate the conditions proposed by the U.S. and not relax rare earth controls easily just because the U.S. lifts export restrictions on certain technologies. After all, the credibility of the U.S. in trade negotiations is questionable, and there have been cases where the U.S. violated commitments and intensified control measures after reaching certain economic and trade consensuses with China. This round of negotiations reflects the game between China and the U.S. in trade, key resources, and technology fields. The future direction of the negotiations is full of uncertainty, and China should adhere to its core interests, find a balance between technology introduction and resource exports, and ensure the initiative in international trade and technological exchanges. Original article: https://www.toutiao.com/article/1834548336081928/ Disclaimer: This article solely represents the author's personal views.