The automotive and robotics industries have been hit particularly hard by China’s rare earth export restrictions in recent weeks, but analysts warn Western defense giants will also feel the heat.
Top U.S. and Chinese officials are resuming trade talks in London for a second consecutive day on Tuesday, pushing to de-escalate tensions over rare-earth minerals and advanced technology.
The White House has signaled a willingness to ease chip export controls if Beijing accelerates rare earth exports, boosting investor hopes of a breakthrough. Both sides have accused each other of reneging on a preliminary trade deal struck in Geneva last month.
China’s Ministry of Commerce in early April imposed export restrictions on several rare earth elements and magnets widely used in the automotive and defense sectors. The curbs were part of a response to U.S. President Donald Trump’s tariff increase on Beijing’s exported products.
National Economic Council Director Kevin Hassett on Monday told CNBC’s “Squawk Box” that he expected a deal on rare earths to be struck quickly.
