US Besant, “Immediate implementation of the Busan agreement” in response to China’s economic downturn… Expressing dissatisfaction with rare earths, etc.

(Washington = Yonhap News) Correspondent Lee Yu-mi = The United States is urging China to fully and immediately implement the trade agreement reached at the two countries' summit held in Busan in October last year.

Ahead of the US-China summit to be held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit to be held in Shenzhen, China on the 18th, the conflict over the supply of rare earth elements appears to be emerging again.

On the 6th (local time), U.S. Treasury Secretary Scott Besant, along with U.S. Trade Representative (USTR) Jamison Greer, spoke by phone with Chinese Vice Premier Heifeng of the State Council and discussed bilateral economic relations and implementation of the Busan Agreement, the U.S. Treasury said.

In the call, Secretary Bessant emphasized the importance of China fully and immediately implementing the promises it made in Busan and expressed concern over China's recent actions.

At the same time, the U.S. announced that it would closely evaluate China's implementation of the agreement, the Treasury Department reported.

Besant also reiterated the Trump administration's intention to pursue trade and economic policies that benefit American workers, farmers, and businesses and strengthen the U.S. economy and national security.

The Ministry of Finance said that Minister Bessant and Deputy Prime Minister Heo also agreed on the importance of maintaining direct and candid communication.

Minister Bessant also disclosed the contents of this phone call through

This phone call was made amid growing dissatisfaction from the U.S. that China is not fully fulfilling its promises to supply rare earth elements and purchase U.S. agricultural products under the Busan Agreement.

Citing U.S. officials, the Financial Times (FT) reported today that the U.S. is dissatisfied with China's implementation of agreements related to the supply of rare earth elements and exports of other products.

One source said China did not increase rare earth supplies even after Minister Bessant directly conveyed concerns to Deputy Prime Minister Heo in New York in September.

U.S. officials told the FT in September that China was only implementing about two-thirds of the Busan agreement on rare earths.

However, China is denying the U.S. claim that it is not fulfilling its promises related to rare earths.

The United States also believes that although China is keeping its promise to purchase U.S. soybeans, it is not fully implementing the terms of the agreement when purchasing other agricultural products.

In addition, the United States is also concerned about China restricting yttrium exports to Japan, the FT reported.

Yttrium is a key rare earth material used in aircraft engines and missiles, and Japanese companies are using it in parts for products produced in the United States. Japanese companies reportedly warned their government that yttrium stocks were dwindling to a dangerous level.

The phone call between the US and Chinese economic leaders took place as President Donald Trump and Chinese President Xi Jinping are expected to meet on the sidelines of the APEC summit to be held in Shenzhen, China, in about two weeks.

The leaders of the United States and China extended the trade truce deadline until November 10 of this year at the Busan summit last October, and then extended it again until January 10 of next year at the Washington summit last September.

According to the Busan Agreement, the two countries decided to postpone the imposition of high tariffs, and China postponed rare earth export controls while resuming the purchase of agricultural products such as soybeans from the United States.

The FT predicts that trade issues will not be a major topic of discussion at the Shenzhen summit, but that more detailed discussions will take place when the leaders of the two countries meet again at the G20 summit held in Miami, USA in December.

The FT reported that Secretary Besant and Greer are also expected to hold face-to-face meetings with their Chinese negotiating partners between the APEC and G20 summits.