US, Semiconductors for Rare Earths from China?

High-level trade talks between the two countries in London

As the United States and China hold high-level trade negotiations in London, UK, the Financial Times (FT) reported on the 9th (local time) that the US would be open to easing semiconductor export controls to China if China accelerates rare earth exports.

Quoting a senior White House official, FT reported, "US President Donald Trump could ease restrictions on semiconductor sales to China if China agrees to accelerate rare earth exports."

Kevin Hassett, Chairman of the White House National Economic Council (NEC), said US and Chinese negotiators are expected to reach an agreement that could accelerate China's exports of rare earths and magnets. In a CNBC interview that day, he stated, "Our expectation is that US export controls will be relaxed and there will be a large volume of rare earth exports."

FT interpreted, "Chairman Hassett's comments suggest for the first time that President Trump is willing to put export controls on the agenda in trade talks with China."

Hassett did not specify which of the export controls on China would be eased. However, he implied that the restriction preventing NVIDIA from selling advanced semiconductors to China would not be relaxed.

The two countries resumed trade negotiations on the morning of the 10th, following the session on the 9th. The US delegation included Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative (USTR) Jamieson Greer. On the Chinese side, Vice Premier He Lifeng, Commerce Minister Wang Wentao, and Vice Commerce Minister Li Chenggang were reported to have participated.

Reporter Hankyung Han hankyung@hankyung.com