Global Economy News
LAST UPDATE: June 4, 2025
Donald Trump says China’s Xi Jinping is ‘hard to make a deal with’
President Donald Trump expressed frustration with Chinese President Xi Jinping, calling him “extremely hard to make a deal with,” amid renewed trade tensions.
Insight
Trump’s remarks highlight the strained U.S.-China relationship, particularly concerning trade disputes and rare earth export controls. The mutual accusations of violating trade agreements reflect deepening mistrust. China’s strategic control over critical minerals adds complexity to negotiations. The lack of direct communication between the leaders exacerbates uncertainties. The situation underscores the need for clear dialogue and confidence-building measures to prevent further deterioration of bilateral ties and mitigate global economic repercussions.
China’s Wang Calls on US to Put Relations Back on ‘Right Track’
China’s top diplomat Wang Yi urged the U.S. to create conditions for bilateral relations to return to the “right track,” amid escalating tensions over trade and security issues.
Insight
Wang’s call for improved relations signals China’s desire to stabilize ties with the U.S., despite ongoing disputes over tariffs, technology restrictions, and geopolitical concerns. The appeal reflects recognition of the mutual benefits of cooperation and the risks of prolonged confrontation. However, achieving a reset requires addressing core issues and rebuilding trust. Both nations must navigate domestic pressures and international expectations to find common ground. The outcome will significantly influence global economic and political dynamics.
China calls on WTO for greater oversight on unilateral tariffs
At a WTO ministerial meeting in France, China’s Commerce Minister Wang Wentao urged the organization to strengthen supervision over unilateral tariffs and provide neutral policy recommendations.
Insight
China’s appeal to the WTO reflects its concern over the increasing use of unilateral tariffs, particularly by the U.S., which Beijing views as undermining multilateral trade norms. By advocating for enhanced WTO oversight, China aims to reinforce the rules-based international trading system and counteract protectionist measures. This move also serves to position China as a proponent of global trade fairness, potentially garnering support from other nations affected by similar tariffs. However, the effectiveness of this strategy depends on the WTO’s capacity to enforce compliance among its members.
Global alarm rises as China’s critical mineral export curbs take hold
China’s export restrictions on rare earth elements have disrupted global supply chains, causing production halts in industries like automotive and electronics.
Insight
The export curbs highlight China’s dominant position in the rare earth market, which is crucial for various high-tech industries. The resulting supply chain disruptions have prompted countries and companies to seek alternative sources and invest in domestic production capabilities. This situation underscores the vulnerabilities of over-reliance on a single supplier for critical materials. It also accelerates discussions on supply chain diversification and the development of strategic reserves to mitigate future risks.
