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White House aide: US seeks a 'handshake with China' on rare Earths

Kevin Hassett, White House economist, said that the three U.S. top trade negotiators want to shake hands with China during London talks in order to seal an agreement reached between Presidents Donald Trump & Xi Jinping on rare earths.

Hassett, Director of the National Economic Council told CNBC that the purpose of today's meeting was to ensure that everyone is serious and to get a handshake.

Hassett said, "I anticipate a brief meeting with a strong, big handshake."

Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, along with U.S. trade representative Jamieson Greer, were scheduled to meet their Chinese counterparts on Monday in London to try to diffuse the ongoing trade dispute that has escalated in recent weeks. This includes export controls of goods vital to global supply chains.

Hassett stated that the Chinese export controls for rare earths were a major sticking point.

He said that because China controls the majority of rare earth and magnet supplies in the world, its restrictions to send them to the U.S. may disrupt production, especially for American automakers who rely on these materials.

Hassett responded to the question about Chinese opposition to U.S. restrictions on semiconductor exports: "Our expectation, after the handshake and immediately after the handshaking, is that any export controls by the U.S. would be eased and the rare Earths released in large quantities, so we could then go back to the smaller issues." (Reporting and editing by Susan Heavey, Toby Chopra, and Doina Chopra).

(source: Reuters)