America and China made a trade deal during talks held in London on Tuesday. The United States agreed to ease some restrictions on computer chips going to China. Chinese leaders promised to send rare earth metals that American car companies need for electric vehicles. Both countries also discussed letting more Chinese students study at American universities. The agreement helps solve problems that hurt businesses on both sides.
China controls most of the world's processed rare earth metals that factories use to make electric car parts. American auto plants almost stopped making cars because they could not buy these materials from China. The United States has plenty of raw rare earth metals buried underground but lacks the factories needed to process them into usable products. Building these processing plants would take many years and cost billions of dollars.
President Trump said America will keep a 55 percent tax on Chinese products coming into the country. China agreed to maintain a 10 percent tax on American goods sold there. Commerce Secretary Lutnick promised that America would not share its best computer chip technology with China. The deal only lasts six months before both countries must negotiate again.
China controls most of the world's processed rare earth metals that factories use to make electric car parts. American auto plants almost stopped making cars because they could not buy these materials from China. The United States has plenty of raw rare earth metals buried underground but lacks the factories needed to process them into usable products. Building these processing plants would take many years and cost billions of dollars.
President Trump said America will keep a 55 percent tax on Chinese products coming into the country. China agreed to maintain a 10 percent tax on American goods sold there. Commerce Secretary Lutnick promised that America would not share its best computer chip technology with China. The deal only lasts six months before both countries must negotiate again.
