Global Economy News
LAST UPDATE: June 10, 2025
Trump Eyes Chip Export Deal for Rare Earths in China Talks
FT / Reuters
U.S. trade talks with China in London are exploring a deal to ease U.S. chip export controls in exchange for China relaxing rare‑earth mineral restrictions, with President Trump and Xi Jinping playing key roles.
Insight
This signals a strategic pivot in trade diplomacy: the U.S. may offer tech concessions on advanced chips to secure critical rare earth supplies—a reversal of previous hardline stances. Such a deal could lower costs and enhance stability for U.S. industries dependent on these minerals, while giving China leverage to negotiate relief from tech export constraints.
Leaders warn race for minerals could turn seabed into ‘wild west’
At a UN ocean summit in Nice, leaders cautioned that a rush to mine deep‑sea minerals risks turning the seabed into a deregulated “wild west,” particularly criticizing unilateral U.S. moves.
Insight
The emergence of fragmented extraction efforts highlights a governance void in international seabed regulation. Without a binding global framework, powerful nations could exploit mineral-rich areas, undermining conservation and indigenous rights. This debate underscores the urgency for stronger enforcement of the 2023 High Seas Treaty and the need to balance resource access with environmental stewardship.
Development banks to invest 3 billion euros in ocean plastics fight
A coalition of development banks—including EIB and regional institutions—will commit at least €3 billion through 2030 to tackle ocean plastic pollution in its second phase, expanding investment in waste prevention and recycling.
Insight
This financing marks a major escalation in the fight against plastic pollution by shifting from cleanup to prevention—investing in packaging innovation, recycling infrastructure, and global collaboration. It also highlights growing recognition of marine plastic as a systemic risk for habitats, fisheries, and human health, aligning with UN projections of drastic increases in ocean plastic by 2040.
OPEC oil output rises in May but compensation cuts limit hike, Reuters survey finds
OPEC’s output rose by just 150,000 barrels per day in May to 26.75 Mbpd—well below the 310,000 bpd quota—due to Iraq’s cuts and Saudi/UAE underproduction.
Insight
The measured increase underscores OPEC’s cautious unwinding of production cuts, balancing market stability with member compliance. Iraq’s compensatory cuts highlight discipline efforts, while Saudi and UAE noted restraint. As OPEC+ meetings loom, any acceleration could shift global supply dynamics, pushing prices lower and challenging rival producers like U.S. shale.
