New disputes emerge ahead of U.S.-China trade talks in London
BEIJING — U.S.-China trade talks in London this week are expected to take up a series of fresh disputes that have buffeted relations, threatening a fragile truce over tariffs.
Both sides agreed in Geneva last month to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of recession.
Since then, the U.S. and China have exchanged angry words about advanced semiconductors that power artificial intelligence, 'rare earths' that are vital to carmakers and other industries, and visas for Chinese students at American universities.
President Trump spoke at length with Chinese leader Xi Jinping by phone Thursday in an attempt to put relations back on track. Trump announced on social media the next day that trade talks would be held Monday in London.
The latest frictions began just a day after the May 12 announcement of the Geneva agreement to 'pause' tariffs for 90 days.
The U.S. Commerce Department issued guidance saying the use of Ascend AI chips from Huawei, a leading Chinese tech company, could violate U.S. export controls. That's because the chips were probably developed with American technology despite restrictions on its export to China, the guidance said.
The Chinese government wasn't pleased. One of its biggest beefs in recent years has been over U.S. moves to limit the access of Chinese companies to technology, and in particular to equipment and processes needed to produce the most advanced semiconductors.
'The Chinese side urges the U.S. side to immediately correct its erroneous practices,' a Chinese Commerce Ministry spokesperson said.
U.S. Commerce Secretary Howard Lutnick wasn't in Geneva but will join the talks in London. Analysts say that suggests at least a willingness on the U.S. side to hear out China's concerns on export controls.
One area where China holds the upper hand is in the mining and processing of rare earths. They are crucial for not only autos but also other products such as robots and military equipment.
The Chinese government started requiring producers to obtain a license to export seven rare-earth elements in April. Resulting shortages sent automakers worldwide into a tizzy. As stockpiles ran down, some worried they would have to halt production.
Trump, without mentioning rare earths specifically, took to social media to attack China.
'The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump posted on May 30.
The Chinese government indicated Saturday that it is addressing the concerns, which have come from European companies as well. A Commerce Ministry statement said it had granted some approvals and 'will continue to strengthen the approval of applications that comply with regulations.'
The scramble to resolve the rare-earth issue shows that China has a strong card to play if it wants to strike back against tariffs or other measures.
Student visas don't normally figure in trade talks, but a U.S. announcement that it would begin revoking the visas of some Chinese students has emerged as another thorn in the relationship.
The Chinese Commerce Ministry raised the issue when asked last week about the accusation that it had violated the consensus reached in Geneva.
It replied that the U.S. had undermined the agreement by issuing export control guidelines for AI chips, stopping the sale of chip design software to China and saying it would revoke Chinese student visas.
'The United States has unilaterally provoked new economic and trade frictions,' the ministry said in a statement posted on its website.
U.S. Secretary of State Marco Rubio said in a May 28 statement that the United States would 'aggressively revoke visas for Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields.'
More than 270,000 Chinese students studied in the U.S. in the 2023-24 academic year.
Moritsugu writes for the Associated Press.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
3 minutes ago
- Business Insider
US Navy warships picked up multiple new Iranian ballistic missile kills in the latest defense of Israel
US warships intercepted multiple Iranian ballistic missiles aimed at Israel this month, the Navy confirmed over the weekend, sharing new details from its third defense of Israel in a year and a half. Israel launched a new military operation against Iran on June 13, prompting Tehran to retaliate with waves of missile attacks. The US Navy moved five of its Arleigh Burke-class destroyers into the Eastern Mediterranean Sea for support if needed. The destroyers — USS Thomas Hudner, USS Arleigh Burke, USS The Sullivans, USS Oscar Austin, and USS Paul Ignatius — are equipped with high-end interceptors that are specifically designed for ballistic missile defense. Officials had previously confirmed that the US ships were providing air defense for Israel, but it was unclear if they scored any hits. However, in a statement on Sunday, the Navy revealed the destroyers intercepted "multiple" Iranian ballistic missiles since June 14. The Navy did not say which interceptors the destroyers used against the Iranian missiles and referred additional questions to US Central Command, which oversees Middle East operations. Business Insider reached out to CENTCOM for more information but did not receive a response. The disclosure comes as Navy leadership raises concerns that the sea service is burning through one of its top ballistic missile interceptors, the Standard Missile-3. Just last week, Adm. James Kilby, acting chief of naval operations, told lawmakers that American warships were using the SM-3 "at an alarming rate." Navy warships fired multiple SM-3 interceptors to defend Israel from large-scale Iranian missile attacks in April and October of last year. The SM-3 missile is an important element of the Navy's Aegis Combat System, equipped on Arleigh Burke-class destroyers and Ticonderoga-class cruisers. It uses a kinetic kill vehicle to destroy short- to intermediate-range missiles during the midcourse phase of their flight. The SM-3 is produced in multiple variants, which can cost as little as $10 million on the low end and nearly $30 million on the high end, according to the US Missile Defense Agency. Analysts have argued that the Navy is depleting its SM-3 stockpile in the Middle East without sufficient plans to replace it, which could be an issue in a Pacific conflict, where these interceptors would likely be needed in large quantities. China, a leading concern, has a large arsenal of ballistic missiles. And the SM-3 is not the only missile interceptor that the Navy is heavily expending in the Middle East. American warships have fired hundreds of SM-2s and SM-6s to defend against attacks by Iran-backed Houthi rebels in Yemen. US military planners have said that one of the challenges of the Red Sea conflict is being forced to use expensive interceptors to defeat cheap Houthi drones. Trying to get on the right side of that cost curve — saving the higher-end missiles for more advanced threats — is an ongoing focus in training across NATO.
Newsweek
8 minutes ago
- Newsweek
Amazon Product Recall Update: Customers Told 'Immediately' Stop Using Items
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Amazon removed dozens of products from its online store this month after the items were recalled. More than 50 products were subject to recall notices in June, with the online marketplace revealing the details of each on its website. Shoppers were informed about a range of issues, including undeclared allergens in food products, faulty medical devices, fire-risk mattresses, and potentially hazardous children's furniture. None of the items were made by Amazon, but they were available via its website until the retailer became aware of the recalls. Amazon subsequently contacted its affected customers and publicized the recalls on its website, saying it "proactively investigates" the products it helps sell. Newsweek reached out to Amazon for comment. Why It Matters Recalls are issued when concerns arise that a product is defective or potentially harmful in some way, such as when testing reveals that foods are contaminated with potentially deadly bacteria or have been infected with a foreign object during the manufacturing process. Products across all industries are subject to recalls, from cars to cocktails. And big-name retailers that stock other brands' products, such as Target, often publicize the details of ongoing recalls on their own websites. Amazon has also published dozens of recall notices this month. Among the items being recalled were approximately 100,000 Crayan brand mattresses, which were sold exclusively by the Chinese brand on Amazon from July 2022 to June 2024 and have now been deemed a fire risk because they don't meet federal safety standards. An Amazon delivery driver carries boxes into a van outside of a distribution facility on February 2, 2021, in Hawthorne, California. An Amazon delivery driver carries boxes into a van outside of a distribution facility on February 2, 2021, in Hawthorne, California. PATRICK T. FALLON/AFP via Getty Images What To Know The items and companies currently listed on Amazon's "recalls and product safety alerts" page are: Sanven Technology Recalls Vevor Handrails Due to Injury Hazard The Coleman Company Recalls Converta Camping Cots and Converta Camping Suspension Stretchers Due to Laceration and Amputation Hazards; Imported by Newell Brands Peg Perego Recalls Tatamia 3-in-1 Recliners, Swings and High Chairs Due to Risk of Suffocation; Violations of Multiple Federal Standards (Recall Alert) iHerb Recalls Bottles and Blister Packs of California Gold Nutrition Iron Supplements Due to Risk of Serious Injury or Death from Child Poisoning; Violation of Federal Standard for Child Resistant Packaging Total Saddle Fit Recalls Western Saddle Cinches Due to Fall and Injury Hazards Bell Sports Recalls Bicycle Helmets Due to Risk of Head Injury; Violation of Federal Standard for Bicycle Helmets Boyro Baby Walkers Recalled Due to Risk of Serious Injury or Death to Children from Fall Hazard; Violations of the Federal Standard for Infant Walkers and Lead Content Ban; Sold Exclusively on FDA Class 2 Device Recall BD Insyte Autoguard Winged, Shielded IV Catheter FDA Class 2 Device Recall BD Insyte Autoguard BC Pro Winged Shielded IV Catheter FDA Class 2 Device Recall BD Insyte Autoguard, Shielded IV Catheter FDA Class 2 Device Recall BD Insyte Autoguard BC Pro Winged Shielded IV Catheter FDA Class 2 Device Recall BD Insyte Autoguard BC Winged, Shielded IV Catheter with Blood Control Technology FDA Class 2 Device Recall BD Insyte Autoguard Winged, Shielded IV Catheter Face Rock Creamery Voluntarily Recalls Vampire Slayer Garlic Cheddar Curds Because of Possible Health Risk Public Recall Title: FDA Class 2 Device Recall LUCAS 2, 3 and 3.1 MaxKare Electric Blankets Recalled Due to Burn and Fire Hazards Crayan Mattresses Recalled Due to Risk of Serious Injury or Death from Fire Hazard; Violation of Federal Standard for Mattress Flammability; Sold Exclusively on Amazon by Crayan Polaris Recalls Ranger XP Kinetic and Pro XD Kinetic Recreational Off-Highway Vehicles (ROVs) Due to Fire Hazard AstroAI Recalls Minifridges Due to Fire and Burn Hazards; Two Fires Resulted in More Than $360,000 in Reported Property Damages YaFiti White Dressers Recalled Due to Risk of Serious Injury or Death from Tip-Over and Entrapment Hazards; Violations of Federal Standard for Clothing Storage Units; Sold on Amazon Medtech Products Inc. Issues Nationwide Recall of Little Remedies® Honey Cough Syrup Due to Microbial Contamination TADAKAZU Baby Loungers Recalled Due to Risk of Serious Injury or Death from Suffocation, Fall and Entrapment Hazards; Violations of Federal Standard for Infant Sleep Products; Sold on Amazon FDA Class 1 Device Recall Dexcom One Glucose Receiver FDA Class 3 Device Recall AcoSound FDA Class 2 Device Recall Texium CSTD Vita-Warehouse Corp. Issues Allergy Alert on Undeclared Peanut Allergen in ALDI Welby®, Berkley Jensen®, and VitaGlobe™ Vitamin B12 Gummy Products FDA Class 2 Device Recall Texium CSTD FDA Class 2 Device Recall Texium CSTD FDA Class 2 Device Recall Hillrom WELCH ALLYN Bugaboo North America Recalls Giraffe High Chairs Due to Risk of Serious Injury or Death from Fall Hazard Mammut Sports Group Recalls Skywalker Pro Via Ferrata Sets Due to Risk of Serious Injury or Death from Fall Hazard More than One Million Anker Power Banks Recalled Due to Fire and Burn Hazards; Manufactured by Anker Innovations TTI Outdoor Power Equipment Recalls RYOBI 40-Volt 24-Inch Cordless Hedge Trimmers Due to Laceration Hazard Agro Superior Group Recalls Oliver & Smith Mattresses Due to Risk of Serious Injury or Death from Fire Hazard; Violation of Federal Standard for Mattress Flammability Medtronic Announces Voluntary Recall of Select Newport™ HT70 and Newport™ HT70 Plus Ventilators and Certain Related Newport™ Service Parts Bornstein Seafoods Inc Recalls Cooked & Peeled Ready-To-Eat Coldwater Shrimp Meat Because of Possible Health Risk Public Recall Title: FDA Class 1 Device Recall Newport HT70 Ventilator Church & Dwight Co., Inc. Issues Voluntary Nationwide Recall of Zicam® Cold Remedy Nasal Swabs, Zicam® Nasal AllClear Swabs, and Orajel™ Baby Teething Swabs Due to Microbial Contamination August Egg Company Recalls Shell Eggs Because of Possible Health Risk Firehook of Virginia Issues Allergy Alert on Undeclared Sesame in Classic Sea Salt Crackers Yamaha Expands Recall of Golf Car Vehicles Due to Crash Hazard; Additional Models and New Repair to Replace Accelerator Pedal Spring Assembly Johnson Health Tech Trading Recalls BowFlex Adjustable Dumbbells Due to Impact Hazard, Including 3.7 Million Sold by Nautilus Inc. ZRWD Infant Swings Recalled Due to Risk of Serious Injury or Death from Suffocation Hazard; Multiple Federal Safety Violations; Sold Exclusively on by ZRWD Portable Hook-On Chairs Recalled Due to Risk of Serious Injury or Death from Fall Hazard; Violation of the Federal Standard for Portable Hook-On Chairs; Sold Exclusively on by Ravmix ZHORANGE Portable Bassinets Recalled Due to Risk of Serious Injury or Death from Fall Hazard; Violation of Federal Standard for Infant Sleep Products; Sold on by DFD Trading Funlio Convertible High Chairs Recalled Due to Risk of Serious Injury or Death from Fall and Entrapment Hazards; Violation of Federal Standards for High Chairs; Sold by Ecogoods Rinnai America Recalls Boilers Due to Carbon Monoxide (CO) Poisoning Hazard Midea Recalls About 1.7 Million U and U+ Window Air Conditioners Due to Risk of Mold Exposure Class 2 Device Recall Lazervida 10W Diode Laser Cutter and Engraver (Model LVD1) Sulu Organics LLC Recalls Pork Lard & Beef Tallow Products Produced Without Benefit of Inspection Springville Meat & Cold Storage Co., Inc., Recalls Beef Jerky/ Beef Snack Stick Products and Voluntarily Inspected Elk, Venison and Buffalo Jerky Products Due to Misbranding and Undeclared Allergens What People Are Saying Amazon, on its website: "Our Product Safety Team proactively investigates and addresses reported safety complaints and incidents to ensure customer protection from potential product-related safety risks. We closely monitor public recall alert websites and receive notifications from vendors and sellers. Upon discovering a product recall, we immediately halt affected product offerings, and promptly inform both customers and sellers involved about the recall." What Happens Next Consumers have various rights when an item they've purchased is hit by a recall, with most manufacturers or sellers typically offering full refunds. Anyone concerned that they bought a product via Amazon that is now subject to a recall should visit its "recalls and product safety alerts" page for further information.
CNBC
8 minutes ago
- CNBC
NEC Director Hassett: We're on track for the 'big beautiful bill' to pass the Senate
Kevin Hassett, National Economic Council director, joins CNBC's 'Squawk on the Street' to discuss expectations for the Senate passage of President Trump's 'big beautiful bill,' whether the bill could increase the U.S. budget deficit, and more.
