Trade tensions between the United States and China remain uncertain, with neither side able to confirm that the other is holding up their end of a 90-day truce on trade measures agreed upon last week.
China’s Response
- China’s Ministry of Commerce has warned that it will take legal action against those involved in assisting or implementing measures to curb the use of advanced semiconductors from China.
- The U.S. Bureau of Industry and Security had toned down its language and dismissed a more restrictive Biden-era plan on chips.
- Despite this, China accuses the U.S. of undermining trade talks with a Huawei chip warning last week.
Concerns Over Rare Earth Exports
Many in the U.S. are concerned that China isn’t relaxing rare earth export controls, which dominate global supply chains for many high-tech industries, such as electric cars.
- Scott Kennedy, senior adviser and trustee chair in Chinese Business and Economics at CSIS, warns that if exports aren’t relaxed soon after June 15th, there could be re-escalation between the U.S. and China before July 16th, when the deadline expires for both sides to suspend all tariffs imposed since March 2020.
Diplomatic Engagement
Newly appointed Ambassador David Perdue arrived in Beijing just over two weeks after being confirmed by the Senate. He previously worked as head of Asia for Sara Lee packaged consumer goods company.
- Perdue posted on X, calling for strong actions on fentanyl and stated that alongside U.S. Trade Representative Jamieson Greer, they were meaningfully engaged with Chinese officials to address this dangerous situation.
Business Leaders’ Perspectives
Business leaders continue to navigate these uncertain waters.
- In an exclusive interview with CNBC, Cristiano Amon discussed tariffs’ impact on Qualcomm’s business in the China market.
- Mark Templin joined CNBC’s Closing Bell to discuss Toyota’s product launches, pricing, and more.
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