Containers are piling up in Taicang Port Container Terminal in Suzhou City, the province of Jiangsu, China, on May 18, 2025.
Nurphoto | Nurphoto | Getty images
This report is the CNBC of this week The China Connection newsletter, which brings you insights and analysis about what stimulates the second lowest economy. Every week we explore the biggest business stories in China, give a low -down on market movements and help set up UU for the coming week. Like what you see? You can subscribe Here
The big story
Only a week after breakthrough in trade tensions in the US-China, Neithher Side can still be sure that the other person will keep their end of the bargain up.
“Bese 90 days will not be flexible,” said Liu Weidong, researcher at a think tank of the state of Faffilian, the Chinese Academy of Social Sciences’ Institute of American Studies, this week. That is according to a CNBC translation of his comments from Mandarin language.
He then predicts raised ungent and smaller steps, given the already large breakthrough, while the US and China each try to perform to a middle ground.
The attitude has already begun.
The Chinese Ministry of Trade warned on Wednesday that legal action would take against those involved in helping or implementing measures to curb the use of advanced Semi asver nursing from China.
It follows an earlier accusation from the same ministry on Monday that the US bowed to undermine trading talent with a Huawei chip warning last week -although the American Bureau of Industry and Security and Security is coordinated and its language and dysmissed Biden -be with chips plan.
Many in the US are also concerned that China is not rare rare export controls, another area in which China dominates the supply chain. That is the vague description of the joint declaration of how China “would suspend the non-Tariff opposite measures against the United States against the United States since 2 April 2025”
“I think Washington expected that export controls on that group of rare earths will be lowered, influencing the export in a relaty on -restricted way,” said Scott Kennedy, senior advertisement and Trustee Chine in Chinee Business and Economics in the Washington, DC
“If it turns out that that is not in fact the result, the US concluded that China is contrary to the agreement,” he said. “We could roughly roughly than show a re-scal campaign.”
While the White House still has to respond to CNBC request for comments, a step back is revealed in ambiguity on the side of China.
But are the rare Earth export checks part of China’s countermeasures for American rates? That is under discussion. She has not explicitly labeled an APIL 4 document from the Chinese Ministry of Commerce and the customs agency that announced the export checks.
Although China has paused restrictions on 28 USIs that were beaten with export controls on critical minerals, the Ministry has made various public statements about strengthening exhibition export checks on critical minerals.
“Given the extensive and competitive nature of bilateral relations, the current ceasefire – although focused on trade – is easily undermined by export controls,” said Yue, his most important economist, China, in the Economist Intelligence Unit.
“Although it is unlikely that rhetorical postures undermine the 90-day truce, China can calm his export control regime in a measured response to American actions,” she said.
The Chinese Trade Ministry Onyy also announced tasks of a maximum of 74.9% on the import of an engineering plastic from the US, Europe, Japan and Taiwan.
Talk Trump-Xi?
US President Donald Trump told Fox News last week that he is open to a phone call with Chinese President Xi Jinping, or even a trip to China. But Beijing did not drop any hints.
“It would surprise me if the two steps in the middle of these issues on the right with so much uncle,” said Kennedy.
The new USSador in China, David Perdue, arrived in Beijing on Thursday, just over two weeks after confirmation by the Senate. He used to be the head of Asia for US packages Consumer Goods Company Sara Lee.
One of Perdue’s first social media reports Called for “strong actions” on Fentanyl. He said on X that, together with the American trade representative Jamieson Greer, they “went meaningfully with the Chinese for the next steps to stop this dangerous situation.”
Earlier this year, the US left 20% of rates due to the alleged role of China in the fentanyl crisis.
The joint statement last week said that the US and China would establish a mechanism for discussions about economic and trade relations, but neither of them specified when the next one would take place.
Liu, who helped a report in February with the bilateral collaboration of Carter Center, emphasized the general focus of current conversations instead of technology. I have expected that China could ultimately agree to buy more American agricultural and energy products – given the perception that can influence Trump under pressure.
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Have to know
In the markets
The performance of the Shanghai composite in the past year.
The Chinese and Hong Kong shares climbed on Wednesday.
The CSI 300 of mainland China rose by 0.68%, while the Hang Seng index of Hong Kong – which includes large Chinese companies – rose by 0.53% from noon local time.
The Benchmark 10-year-old Chinese bond returns are 1,669%.
Come up
May 22: Xiaomi to set up the chip of mobile phones, the first SUV and other products
May 27: China to report industrial profit for April
