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US Accuses China of Failing to Fulfill Rare Earth Export Commitments - Auto Suppliers in Crisis

US Accuses China of Failing to Fulfill Rare Earth Export Commitments - Auto Suppliers in Crisis

According to The Wall Street Journal, during talks in Geneva, the US requested China to resume rare earth exports as a quid pro quo for a 90-day tariff truce. However, China has not honored this commitment, raising concerns among US auto suppliers.

President Trump and Trade Representative Jamieson Greer accused China of delaying export permits for rare earths and other essential raw materials critical to the production of cars and chips. Several large suppliers have warned the White House that continued delays could lead to factory shutdowns.

On social media, Trump stated that China violated the agreement, while Greer criticized the slow response from China. Reports suggest that China's changing stance may be linked to a recent warning from the US regarding Huawei's AI chip, which has affected China's willingness to concede.

US Treasury Secretary Scott Bessent emphasized that only direct talks between Trump and Xi Jinping could break the current deadlock. As trade tensions escalate, the US has further tightened export controls on Chinese high-tech products.