A “DONE” DEAL?
The telephone name paved the way in which for discussions in London earlier this month, throughout which each side appeared to agree on a brand new framework to implement the Geneva settlement. Mr Trump claimed in a Reality Social put up {that a} deal had been reached with China, pending remaining approval from each him and Mr Xi. He seemingly prompt that China had agreed to produce US corporations with magnets and uncommon earth metals, whereas the US would ease its threats relating to the revocation of Chinese language pupil visas.
Nonetheless, there’s greater than meets the attention. It’s exhausting to imagine that China would comply with resume uncommon earth provides solely in trade for continued visa issuance for Chinese language college students. In any case, management over uncommon earths – of which China processes 90 per cent globally – has develop into a big leverage level towards the US.
It’s extra believable that China will proceed to push the US to loosen up restrictions on extra superior chips, despite the fact that US Treasury Secretary Scott Bessent acknowledged there could be no “quid professional quo” relating to easing curbs on AI chip exports to China in trade for entry to uncommon earths.
In the meantime, it’s believed that Chinese language corporations are discovering methods to accumulate the most recent AI chips, because the US restrictions have inadvertently created a booming black marketplace for these provides. One trade supply likens the US restrictions on AI chips to the futility of the Prohibition period within the US.
As one fashionable meme illustrates, Mr Trump declares, “I maintain the playing cards,” to which Mr Xi replies, “The playing cards are made in China.”
Wang Xiangwei is a former Editor-In-Chief of South China Morning Submit. He now teaches journalism at Hong Kong Baptist College.
