On Wednesday, September 24th, the US Treasury Secretary Scott Bessent stated that the United States and China have been at odds in trade negotiations, but crucial chips are held by the US, and both sides will engage in trade talks again in October and November.
Bessent was interviewed on Fox Business Network’s “Mornings with Maria” program on Wednesday. The host asked how to ensure the continued flow of rare earth minerals from China to the US, as China has been using rare earths to retaliate against the US. Bessent responded that currently, rare earth mineral production from China continues to flow into the US unabated, and the US also holds cards, noting that China relies on the US for many products, hence the ongoing standoff between the two sides.
The Treasury Secretary added, “We don’t want to decouple from China, but we need to reduce risk.”
When asked what would be the US’s chips, Bessent stated, “There are a wide range of products, possibly aircraft engines, aircraft parts, certain chemicals used in plastic production, or silicon components, the scope is broad.”
These chips are likely to give the Trump administration an advantage in reaching a broad trade agreement with Beijing.
Negotiations for Boeing aircraft trade between the US and China have entered the final stage, and this trade could ultimately become the “core” of a broader trade agreement between the two countries.
US Ambassador to China, David Perdue, revealed on Tuesday that Beijing is finalizing a “huge” Boeing aircraft order with the US.
Following a call between the leaders of the US and China last Friday, progress has been made on several aspects of reaching a broader agreement. Trump disclosed that an agreement has been reached between the two countries to divest the operating rights of the TikTok application in the US to an investor consortium including Oracle.