Global Economy News
LAST UPDATE: June 10, 2025
Trump Says China ‘Not Easy’ as Trade Talks to Resume Tuesday
Trade talks between the US and China will continue into a second day, according to a US official, as the two sides look to ease tensions over shipments of technology and rare earth elements. “We are doing well with China. China’s not easy,” Trump told reporters at the White House on Monday.
Insight
Trump’s candid assessment that China is “not easy” to negotiate with reflects the structural complexities of the world’s most important bilateral trade relationship, where both sides hold significant leverage through different mechanisms – China controls rare earth supplies while the US dominates advanced semiconductor technology. The extension of talks to a second day in London suggests some progress, but also indicates that fundamental disagreements over technology transfers, export controls, and market access remain unresolved despite months of negotiations. The focus on rare earth elements and technology shipments highlights how trade disputes have evolved beyond traditional tariff battles into strategic competition over critical materials and advanced technologies essential for national security and economic competitiveness. Trump’s willingness to potentially ease some tech export restrictions in exchange for Chinese rare earth commitments represents a tactical shift toward more targeted sanctions rather than broad-based tariffs, though success will depend on China’s willingness to guarantee stable mineral supplies. The market reaction, with Chinese stocks entering a bull market and US indices rising, demonstrates how investor sentiment remains highly sensitive to any signs of US-China cooperation, reflecting the global economy’s dependence on stable relations between the two superpowers.
China delays decision in EU pork import case amid EV tariff talks
China extended on Tuesday a high-profile investigation into imported pork from the European Union by six months, days before it was due to wrap up and as negotiators from Brussels and Beijing carve out a deal over the bloc’s electric vehicle tariffs. The probe is widely seen as retaliation for EU tariffs on Chinese electric vehicle exports and has hit over $2 billion in pork exports.
Insight
China’s strategic delay of its pork import investigation decision represents sophisticated economic diplomacy, using the timing as leverage while broader trade negotiations with the EU continue over electric vehicle tariffs, demonstrating Beijing’s coordinated approach to managing multiple trade disputes simultaneously. The six-month extension until December 16 provides breathing room for both sides to find a comprehensive solution that addresses Chinese concerns about EV tariffs while protecting European agricultural exports, particularly benefiting major pork producers like Spain, Netherlands, and Denmark. This tactical move reflects China’s broader strategy of using targeted sectoral investigations as bargaining chips rather than imposing immediate retaliatory measures, allowing for face-saving compromises that could benefit both parties while avoiding a full-scale trade war. The interconnection between seemingly unrelated sectors – electric vehicles and pork – illustrates how modern trade disputes have become multidimensional, with countries using their economic strengths in various industries to create complex webs of mutual dependence and leverage. The timing suggests that China may be responding positively to recent EU diplomatic overtures, possibly including progress on rare earth export licenses for European firms and ongoing discussions about electric vehicle tariff modifications.
China ready to strengthen coordination with France, Chinese vice president says
Chinese Vice President Han Zheng said on Monday that China is willing to strengthen bilateral and multilateral strategic communication and coordination with France, and inject new impetus into the development of China-France relations. The meeting occurred on the sidelines of the UN Ocean Conference in Nice, France.
Insight
The high-level meeting between Chinese Vice President Han Zheng and French President Macron represents China’s strategic cultivation of European partners as a counterweight to increasing pressure from the United States, particularly as Trump’s trade policies create uncertainty for traditional alliance structures. Han’s emphasis on supporting France’s “strategic autonomy” directly appeals to Macron’s long-standing vision of European independence from both American and Chinese dominance, potentially offering Beijing an opportunity to drive wedges within the Western alliance. The timing of this diplomatic outreach, coinciding with the 50th anniversary of China-EU diplomatic relations, suggests Beijing recognizes the importance of maintaining European relationships even as broader US-China tensions escalate across multiple fronts including technology, trade, and security. China’s willingness to expand cooperation fields with the EU while simultaneously engaging in trade disputes over electric vehicles and other sectors demonstrates a sophisticated diplomatic approach that separates bilateral relationships from multilateral trade tensions. The meeting’s focus on climate change, biodiversity protection, and multilateralism provides common ground that could allow China and France to collaborate even while disagreeing on other issues, potentially creating space for more nuanced European approaches to China policy.
Trump’s cuts are ‘devastating’ for vulnerable women worldwide: UN
The United Nations Population Fund (UNFPA) has faced budget cuts before, but the impact of President Donald Trump’s policies has been even more “devastating” for reproductive health worldwide, chief Natalia Kanem told AFP. “We’ve had over $330 million worth of projects ended,” virtually overnight, in “some of the hardest hit regions of the world” like Afghanistan.
Insight
Trump’s sweeping cuts to reproductive health funding represent a more comprehensive assault on global women’s health than previous Republican administrations, as the simultaneous targeting of multiple organizations creates a “whirlwind” effect that eliminates backup support systems. The $330 million in terminated projects affects the world’s most vulnerable populations, particularly in conflict zones like Afghanistan, where women already face severe restrictions under Taliban rule. Unlike previous cuts that affected individual organizations, this coordinated approach deliberately dismantles what UNFPA chief Kanem calls the “ecosystem of reproductive health actors,” making it impossible for alternative organizations to fill gaps left by US withdrawal. The timing coincides with growing global challenges to women’s rights, creating a perfect storm where international funding cuts amplify domestic restrictions worldwide. This represents a strategic shift from targeted restrictions to systematic dismantling of international reproductive health infrastructure, with consequences that will extend far beyond Trump’s presidency and affect maternal mortality rates globally for years to come.
