The United States and China have demonstrably identified each other's vulnerabilities this year. The initial dispute over tariffs has evolved into a contest of supply chain control.
China has restricted the global distribution of rare earth minerals, critical components in the manufacturing of automobiles, weaponry, and various electronic devices. In response, the United States has halted shipments to China of essential materials, machinery, and technology, including software and components used in the production of nuclear power, aircraft, and semiconductors.
This escalating conflict has already impacted businesses, leading to operational suspensions for companies like Ford Motor. Both nations are now seeking a resolution to de-escalate the situation. High-level officials from both countries convened in London for a second day of trade negotiations. This meeting followed a direct phone conversation between President Trump and Chinese leader Xi Jinping, marking their first direct communication since the beginning of the year.
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