Ahead of the upcoming meeting between President Trump and Chinese President Xi Jinping, U.S. Trade Representative Jamieson Greer reaffirmed the United States’ commitment to fostering a stable trade relationship with China. Speaking at the Hudson Institute in Washington, Greer expressed the aim of preventing significant confrontation while ensuring American access to critical rare earth minerals.
Greer described the current trade landscape with China as “stable,” notwithstanding the considerable tariffs imposed on a range of advanced goods. He highlighted the necessity of safeguarding national economic security amid what he characterised as a “structural” trade deficit with China, which has seen marked growth.
Last year, the trade deficit with China decreased by $130 billion, or approximately 30%, a positive sign Greer noted. He expressed hope that both nations could reach an agreement on rare earth minerals prior to the anticipated meeting between the two leaders, stating that President Trump will continue to advocate for U.S. access to these essential resources.
In addition to addressing rare earth minerals, Greer mentioned that discussions are ongoing to establish a government-to-government “board of trade” with China. This initiative aims to identify non-sensitive goods suitable for trade, thereby facilitating discussions on more complex issues.
Reflecting on America’s future economic strategy, Greer underscored the importance of reducing reliance on China for critical minerals. The U.S. has implemented an action plan with Mexico to pinpoint essential minerals and strategise on boosting supply. Greer emphasised the need for a price floor to protect domestic production from market fluctuations, referencing previous challenges when China flooded the market with low-cost minerals after tightening supply in the early 2010s.
In a notable reference to broader trade relations, Greer cited a trade agreement with Europe, known as the Turnberry agreement, which aims to dismantle unwarranted digital trade barriers. However, he pointed out discrepancies in interpretations of this agreement between the U.S. and EU representatives, highlighting potential challenges given the evolving landscape of digital regulations in Europe that may adversely impact U.S. tech companies.
Greer acknowledged the significant contributions U.S. tech firms make to the European market, particularly in terms of cost-saving services and productivity enhancements for European businesses. Nonetheless, he critiqued recent European regulations, like the Digital Markets Act, for potentially neglecting consumer welfare and disproportionately affecting U.S. companies.
As the U.S. continues to navigate trade relations with both China and Europe, the emphasis remains on building partnerships to ensure economic stability and self-sufficiency in critical sectors.
