Description: Chinese and US foreign officials shifted blame and traded accusations around potential violations in the predetermined conditions discussed in the Geneva trade talks. Trade representatives from both sides recently divulged that the negotiations reached a standstill and needed direct involvement from the presidents of both countries in order to continue. US President Donald Trump recently issued an order invoking visas for Chinese students which substantially deterriorated the already fragile diplomatic relations, while China has enforced a continuous blockade on its rare earth mineral exports inflicting losses upon critical US industries. Presidents Trump and Xi are expected to speak soon, although no precise information was published regarding the time and date of the conversation.
Impact: The US – China trade negotiations despite reportedly having experienced a soft diplomatic landing in Geneva have come at a point of confliction which impacts constructive dialogue and future trade negotiations. China’s blockade on its vast rare earth minerals exports caused considerable disturbance on the industries which are largely dependent on the materials as a response to the US’ invocation of visas for Chinese students. The expected phone conversation between President Trump and Xi could potentially untangle the negotiating obstacles and deescalate the tensions surrounding the ongoing negotiations. The trade negotiations are expected to continue as domestic economies in both countries have considerably suffered from the mounting tariff pressure.