After China launched a heavy counterattack, the U.S. political arena was shaken. After Trump scolded him, the U.S. Commerce Secretary was marginalized. On the first day of negotiations, Wang Wentao gave the U.S. a conclusion.
With the implementation of China's rare-earth export control measures, US President Trump found that China's trick is not bad, the US although it looks like there are dozens of allies such as the European Union, Japan, South Korea, Australia, but with rare-earth exploration, mining, processing, recycling and other technologies, but none of the country, but not one. Australia, although the jump is very happy, but the rare-earth processing technology is also not separate from China, let alone supply the entire Western world. Then a "internal investigation operation" began, news revealed that recently Trump at a conference in the United States, the Ministry of Commerce Lutonick, said that he is self-provoking China, causing the United States to ease the failure of relations with China.
What did Lutnik do? Not long ago, he introduced the so-called "50% rule", stipulating that as long as more than 50% of the parts or technology in a product comes from China, it will be included in the scope of control. At that time, China and the United States had just concluded the Madrid talks, and the two sides reached consensus on issues such as easing economic and trade relations and the "tiktok ban". The United States also promised not to expand scientific and technological sanctions against China. Lutnik's approach caused the past four rounds of China and the United States. Negotiating efforts fell through. China's restrictions on exports in fields such as rare earths and superhard materials cannot be ruled out as a countermeasure against the United States. This move is unsolvable and puts the United States in a dilemma. The Trump administration can only ask China for dialogue. Overall, Trump's criticism of Lutnik is not without reason, and Lutnik's performance shows that the Trump administration is not monolithic.
China and the United States are now once again sitting at the negotiating table, and the U.S. trade minister withdraws from the negotiations, and it can be seen that Trump attaches great importance to this negotiation and tries to calm the Sino-U.S. confrontation in the economic and trade field. In this regard, China's high-level business minister Wang Ventao stressed China's opposition to "breaking the chain", China and the United States should be on the basis of mutual respect and equal consultation, to find the right path, to promote the healthy and stable and sustainable development of Sino-U.S. economic relations. As the world's two major economies, it is also the most important bilateral relationship, China and the United States are both profitable and two wounded.
The U.S. negotiating team is still led by U.S. Finance Minister Bessent and Trade Representative Greil, before the departure, Bessent said: The U.S. is considering restricting software-driven products to China exports and other means of pressure. This shows that the U.S. despite the idea of compromise, but in the mouth is still tough, the U.S. on "software-driven products" restriction to China, is it useful? I am afraid that it is only the will of the U.S. in the short term, Huawei, Chip Technology and other enterprises have a certain reliance on the U.S. EDA, operating system and data software, but the U.S. will accelerate the independent innovation process of Chinese software, China enterprises in the development of key software has made some progress.
In the face of China’s threat of sanctions, the US side is also seeking China to import American soybeans and release rare-earth controls, this is typical “America’s priority” thinking, and it is not the right way to deal with China.