The US Commerce Secretary Howard Lutnick will join trade negotiations with China, indicating that export controls will be a central focus of the discussions. The talks are set to begin tomorrow (September 9), with US Treasury Secretary Scott Bessent leading the effort alongside Lutnick, who oversees export regulation.

According to reports from The Wall Street Journal, recent weeks have seen the US-China trade conflict evolve beyond tariffs, now concentrating on restrictions on crucial materials or products that both nations require from each other. The US will press the Chinese delegation to expedite the export of rare earth minerals and magnets, in line with an agreement reached in Geneva last month. Meanwhile, China is expected to urge the US to lift recent restrictions on jet engines and various technologies.

This is critical for the global economy as trade restrictions by both governments disrupt the flow of goods, materials, and parts. Chinese officials have repeatedly complained about the lack of effective communication with the US regarding export controls, which they view as vital to their technological and industrial ambitions.

Amid these negotiations, the US Commerce Department has sent notifications to companies informing them that existing licenses for sales to China might be suspended or revoked. It's reported that these measures cover crucial products, including jet engines needed for domestically built commercial aircraft and software required for chip production. Lutnick emphasized the need for stricter enforcement of export controls during a recent congressional hearing.