New disputes emerge ahead of U.S.-China trade talks in London

By KEN MORITSUGU BEIJING U S -China pact talks in London this week are expected to take up a series of fresh disputes that have buffeted relations threatening a fragile truce over tariffs Both sides agreed in Geneva last month to a -day suspension of bulk of the -plus tariffs they had imposed on each other in an escalating business war that had sparked fears of recession Since then the U S and China have exchanged angry words over advanced semiconductors that power artificial intelligence rare earths that are vital to carmakers and other industries and visas for Chinese students at American universities President Donald Trump spoke at length with Chinese leader Xi Jinping by phone last Thursday in an attempt to put relations back on track Trump broadcasted on social media the next day that pact talks would be held on Monday in London Machinery is a major sticking point The latest frictions began just a day after the May announcement of the Geneva agreement to pause tariffs for days The U S Commerce Department issued guidance saying the use of Ascend AI chips from Huawei a leading Chinese tech company could violate U S export controls That s because the chips were likely developed with American hardware despite restrictions on its export to China the guidance explained The Chinese establishment wasn t pleased One of its biggest beefs in modern years has been over U S moves to limit the access of Chinese companies to system and in particular to equipment and processes needed to produce the preponderance advanced semiconductors The Chinese side urges the U S side to promptly correct its erroneous practices a Commerce Ministry spokesperson mentioned U S Commerce Secretary Howard Lutnick wasn t in Geneva but will join the talks in London Analysts say that suggests at least a willingness on the U S side to hear out China s concerns on export controls China shows signs of easing up on rare earths One area where China holds the upper hand is in the mining and processing of rare earths They are crucial for not only autos but also a range of other products from robots to military equipment The Chinese regime started requiring producers to obtain a license to export seven rare earth elements in April Resulting shortages sent automakers worldwide into a tizzy As stockpiles ran down several worried they would have to halt production Trump without mentioning rare earths specifically took to social media to attack China The bad news is that China perhaps not surprisingly to specific HAS TOTALLY VIOLATED ITS AGREEMENT WITH US Trump posted on May The Chinese authorities indicated Saturday that it is addressing the concerns which have come from European companies as well A Commerce Ministry comment noted it had granted specific approvals and will continue to strengthen the approval of applications that comply with regulations The scramble to resolve the rare earth issue shows that China has a strong card to play if it wants to strike back against tariffs or other measures Plan to revoke apprentice visas adds to tensions Scholar visas don t normally figure in contract talks but a U S announcement that it would begin revoking the visas of particular Chinese students has emerged as another thorn in the relationship China s Commerce Ministry raised the issue when appealed last week about the accusation that it had violated the consensus reached in Geneva Related Articles This day in History June FBI director testifies he was fired over Russia inspection Kilmar Abrego Garcia is back in the US charged with human smuggling as attorneys vow ongoing fight Salmonella outbreak tied to eggs sickens dozens across states In contemporary times in History June James Byrd Jr killed in hate crime Kilmar Abrego Garcia returned to the US charged with transporting people in the country illegally It replied that the U S had undermined the agreement by issuing export control guidelines for AI chips stopping the sale of chip design solution to China and saying it would revoke Chinese candidate visas The United States has unilaterally provoked new economic and agreement frictions the ministry announced in a message posted on its website U S Secretary of State Marco Rubio revealed in a May report that the United States would aggressively revoke visas for Chinese students including those with connections to the Chinese Communist Party or studying in critical fields More than Chinese students studied in the U S in the - academic year Get more Colorado news by signing up for our daily Your Morning Dozen email newsletter