US Finance Minister Scott Besant has said that the export restrictions imposed by China on rare minerals have proved to be a ‘mistake’ for it. These steps made the world realize how Beijing can use these important resources to exert pressure.

Controversy increases over export control
In October, China had implemented new rules on the export of technologies related to rare metals. This thing is considered very important for defence, automobile, consumer electronics and many industries. Due to these sanctions, tension had increased in trade negotiations between America and China. However, following President Xi Jinping and Donald Trump’s meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea this week, China announced it would suspend some export restrictions for a year.

‘China has made the world realize the danger’- Besant
Speaking to the Financial Times, Besant said, ‘China has alerted everyone about the danger. He has really made a mistake. According to him, ‘Showing weapons is one thing, but firing bullets in the air is another matter.’

movement in the global market
Control over rare metals had increased volatility in markets around the world and affected supply chains. This area is considered a major means for China to create international influence. Besant says that now it will not be easy for China to take a similar step again, because many countries including America have ‘prepared options’ against it. He said, ‘China’s leadership team was a little nervous about the global reaction.’

China’s President took America to task
Xi Jinping took on Trump on Friday at the ongoing APEC summit in South Korea. He told leaders of the Asia-Pacific region that his country would help defend global free trade at the annual economic regional forum, which US President Donald Trump ignored.

Major progress has been made towards stopping the trade war between America and China. US Finance Minister Scott Besant said on Sunday that an ‘important framework agreement’ has been reached between the two countries, due to which America’s plan to impose 100% tariff on Chinese goods may be postponed. Also, China can also postpone export controls on rare earths for some time. This agreement has been reached before the meeting next week between US President Donald Trump and Chinese President Xi Jinping.

No need for 100% tariffs!
US Finance Minister Besant said in NBC’s program Meet the Press, ‘I do not think we will have to impose 100% tariff. Apart from this, I hope that China will also postpone its rare earth export controls for some time. He said that under this framework, issues like balanced trade between the two countries, purchase of American agricultural products and fentanyl crisis will also be discussed.

Final terms will be decided in Trump-Xi meeting
Besant said that the final terms of the agreement will be decided by President Trump and Xi Jinping. The meeting of the two leaders is proposed in South Korea next week. The US had earlier warned that if China continued to control rare earth magnets and minerals, new three-digit tariffs would be imposed from November 1.

Important discussions took place during the ASEAN Summit
This conversation took place during the ongoing ASEAN Summit in Kuala Lumpur. This included China’s Vice Premier He Leifeng, top trade negotiator Li Chenggang, US Treasury Secretary Scott Besant and US Trade Representative Jamieson Greer. Li Chenggang said that both sides have reached preliminary agreement on issues like trade truce, fentanyl and export control.

‘There is a positive atmosphere among us now’
Besant told reporters, ‘I think we have a very strong framework ready for Thursday’s meeting between the leaders.’ At the same time, Trump said, ‘I am confident that we will reach an agreement with China. The talks are going in a positive direction.

Big step towards reducing trade war
This agreement is being considered a big step towards reducing the ongoing trade war between America and China. In the last few months, both the countries have faced tensions due to tariffs, export controls and retaliatory sanctions. It is now expected that after the Trump-Xi meeting, some positive announcements may also be made on issues like soybean trade, Taiwan issue, and the release of Hong Kong media businessman Jimmy Lai.