The containers accumulate at the Taicang port container terminal in the city of Suzhou, Jiangsu province, China, May 18, 2025.
Nurphoto | Nurphoto | Getty images
This report comes from this week’s China Connection of CNBC, which brings you ideas and an analysis on what stimulates the second world economy. Each week, we will explore the biggest trade stories in China, give a boost on market movements and help you set up for the coming week. Like what you see? You can subscribe here.
The great story
Only a week after a breakthrough in American-Chinese trade tensions, none of the parties can still be convinced that the other is its end.
“These 90 days will not be smooth,” said this week this week, Liu Weidong, a researcher looking for a state -affiliated reflection group. It is according to a CNBC translation of its remarks in Mandarin language.
It predicts a high uncertainty and smaller steps then, given the already wide breakthrough, because the United States and China each try to feel the other towards common ground.
The posture has already started.
On Wednesday, the Chinese Ministry of Commerce warned that it would take legal proceedings against persons involved in the aid or implementation of measures to limit the use of advanced semiconductors from China.
He followed on Monday a previous accusation of the same ministry who blamed the United States for having undergone commercial talks with a warning from Huawei chip last week – although the American industry and security office really reduced his language and rejected a more restrictive plan from the Biden era on the flea.
In the United States, many United States also fears that China will not relax the controls of rare land exports, another area in which China dominates the supply chain. It is despite the vague description of the joint declaration of the way in which China “suspend or delete non-pricing countermeasures taken from the United States since April 2, 2025.
“I think Washington expected that the export controls of this group of rare earths be lowered, allowing exports in a relatively unrestricted manner,” said Scott Kennedy, principal advisor and president of fiduciaries in business and Chinese economy at the Center for Strategic and International Studies in Washington, DC,
“If it turns out that, in fact, it is not the result, the United States will probably conclude that China is in violation of the agreement,” he said. “We could see a reef as soon as possible.”
While the White House has not yet responded to a request for CNBC comments, one step back reveals the ambiguity on the side of China.
But are rare earth export controls among the Chinese countermeasures at American prices? It is to be discussed. A document of April 4 of the Ministry of Commerce and the Customs Agency in Chinese announcing that export controls have not explicitly labeled them as such.
While China has taken a break in restrictions on 28 American entities that have been slapped with export controls on critical minerals, the ministry has made several public statements on the strengthening of export controls on critical minerals.
“Given the global and competitive nature of bilateral relations, the current truce – while focusing on trade – can easily be undermined by export controls,” said the main economist of Yue su, China, to the intelligence unit of the economy.
“Although the rhetorical posture does not undermine the 90-day truce, China may well recalibrate its export control regime in a measured response to American actions,” she said.
On Sunday, the Chinese Ministry of Commerce also announced up to 74.9% on imports of engineering plastic in the United States, Europe, Japan and Taiwan.
Trump-Xe Talk?
President Donald Trump said last week at Fox News that he was open to a call with Chinese President Xi Jinping, or even a trip to China. But Beijing did not drop clues.
“I would be surprised if the two are going in the middle of these problems right now with so many blurs,” said Kennedy.
The new American ambassador to China, David Lost, arrived in Beijing Thursday, just over two weeks after being confirmed by the Senate. He was previously the head of Asia of the Consumer goods company wrapped in the United States Sara Lee.
One of the first publications of lost social networks called for “strong actions” on fentanyl. He said on X that, with the representative of American trade Jamieson Greer, they were “significantly engaged with the Chinese on the next steps to stop this dangerous situation”.
The United States has left 20% of the prices imposed earlier this year on the alleged role of China in the fentanyl crisis.
Last week’s joint declaration said that the United States and China would establish a mechanism for talks on economic and commercial relations, but none of the parties specified when the next one would occur.
Liu, who helped write a report in February with the Carter Center on bilateral cooperation, stressed that the overall objective of current talks is trade rather than technology. He expects China to possibly agree to buy more American agriculture and energy products – given the perception that farmers’ pressure can influence Trump.
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Need to know
On the markets
The performance of the Shanghai composite in the past year.
Chinese actions and Hong Kong climbed on Wednesday.
The CSI 300 of continental China increased by 0.68% while the Hong Kong Hang Seng index – which includes large Chinese companies – increased from 0.53% to 12 hours.
The return on the Chinese government’s obligations to 10 years of reference is 1.669%.
Coming
May 22: Xiaomi to publish a mobile phone chip, his first SUV and other products
May 27: China will signal industrial profits for April
