The U.S. and China began trade talks in London this morning, with the possibility of the discussions extending into a second day. Earlier today, it was reported that President Trump had authorized Treasury Secretary Scott Bessent to remove semiconductor design software export curbs as a potential bargaining chip. Now, the actual semiconductors themselves could see the removal of restrictions as well, according to the Financial Times.
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“Our expectation is that after the handshake, then immediately after the handshake, any export controls from the U.S. will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters,” said White House economic advisor Kevin Hassett.
Trading Semiconductors for Rare Earth Minerals
On Monday, a top White House official said that Trump would ease restrictions on chip exports if China agrees to increase the flow of rare earth minerals, which are critical in the production of semiconductors, cars, and planes. However, high-end Nvidia (NVDA) chips will continue to face export restrictions.
During the past month, both sides have accused each other of violating the preliminary trade deal reached in Geneva, which took effect on May 14.
Chip stocks are rising higher on the day, led by Qualcomm (QCOM) with a 4.47% return.
