The Trivium China Podcast Ep 28 - Exiting the US-China trade death spiral
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Jun 6, 2025 Hosts Andrew Polk and Trey McArver break down the recent phone call between Xi Jinping and Donald Trump that revived US-China trade talks. They highlight the critical misunderstandings that almost derailed discussions and explore China's rare earth export controls, revealing their effects on global manufacturing. The conversation also touches on the EU's precarious position in these negotiations and the hope for a lasting trade agreement. Overall, there's cautious optimism as the trade dialogue seems to be improving for now.
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Rare Earth Export Controls Misunderstanding
- The key issue in US-China trade talks was misunderstandings about rare earth element export controls.
- China started reviewing licenses but bureaucratic delays frustrated the US, leading to retaliations.
Xi-Trump Call Revives Talks
- The recent Xi-Trump call likely resolved misunderstandings about rare earth export licensing.
- The call resulted in a positive agreement to move forward and schedule more trade talks.
US Priority May Upset Europe
- The US-China trade deal may prioritize US buyers for rare earth licenses, causing European concerns.
- Europe worries that expedited US licenses could leave EU manufacturers disadvantaged.