How drones, tariffs and rare earths could test US-China detente
The post-summit detente between Washington and Beijing has moved from diplomatic language to institutional design. Less than three weeks after the summit between President Xi Jinping and US President Donald Trump, the US Trade Representative (USTR) asked companies to identify “non-sensitive” Chinese goods that might qualify for tariff relief under a new US-China Board of Trade. On the same day, the USTR also proposed Section 301 duties on imports from 60 economies, including
Proposed bilateral trade and investment boards promise stability, but a lack of clarity around key issues could be weaponised
On the same day, the USTR also proposed Section 301 duties on imports from 60 economies, including China, after its forced labour investigation. These parallel moves are the first test of whether the promised trade and investment boards can manage disputes over tariffs, drones, rare earths, licensing and market access.
The overlap suggests a shared vocabulary of restraint, but the differences show why institutions are needed. Washington and Beijing will continue to assert security claims. The practical objective of the proposed trade board is to keep a tariff fight, licensing delay, drone rule, rare earth squeeze or investment screening from becoming a verdict on the whole relationship.
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