The big deal

[Analysts and industry leaders] remain sceptical that the US-China trade relationship is on the mend as the deal fails to fully eliminate tariffs that have slowed the global economy, sets hard-to-achieve purchase targets for China and does not address concerns over Chinese subsidies of state-owned firms.

  alJazeera

I thought that was Trump's big gripe - that China subsidizes its firms.

Trump and his economic advisers had pledged to attack Beijing's long-standing practice of propping up state-owned companies and flooding international markets with low-priced goods as the trade war heated up.

[...]

The Phase 1 deal, reached in December, cancelled planned US tariffs on Chinese-made mobile phones, toys and laptop computers, and halved the tariff rate to 7.5 percent on about $120bn worth of other Chinese goods, including flat-panel televisions, Bluetooth headphones and footwear.

But it will leave in place 25 percent tariffs on a $250bn array of Chinese industrial goods and components used by US manufacturers, and China's retaliatory tariffs on over $100bn in US goods.

Tariffs on Chinese imports have cost US companies $46bn and evidence is mounting that tariffs have raised input costs for US manufacturers, eroding their competitiveness.

Diesel engine maker Cummins Inc said on Tuesday the deal will leave it paying $150m in tariffs for engines and castings that it produces in China.

[...]

While acknowledging the need for further negotiations with China to solve a host of other problems, US President Donald Trump hailed the agreement as a win for the US economy and his administration's trade policies.

Of course he did.

[Chinese Vice Premier Liu He] said Chinese companies would buy $40bn in US agricultural products annually over the next two years "based on market conditions." Beijing had baulked at committing to buy set amounts of US farm goods earlier, and has signed new soybean contracts with Brazil since the trade war started. Soybean futures, which traded 0.4 percent lower throughout much of the deal-signing ceremony, sank even further after Liu's remarks, a sign that farmers and traders were dubious about the purchase goals.

[...]

China's other commitments under the Phase One deal include $54bn in additional energy purchases, $78bn in additional manufacturing purchases, $32bn more in farm products, and $38bn in services, according to a deal document released by the White House.

It also agreed to buy two types of rare earth metals from the US, a surprising move for China, which is the top global producer of the specialized minerals used to make electronics, military weapons and other hi-tech equipment.

Scandium and yttrium, two of the 17 rare earths commonly used in lighting and computers, were among the hundreds of US products that China agreed to buy more of from the US over the next two years.

[...]

Neither scandium nor yttrium is currently produced in the US.

Brilliant.

However, several smaller mining firms are developing US mines to produce them and other rare earths.

Friends of Trump?

The initial trade deal effectively gives those firms a guaranteed customer, a step that should help in the hunt for project financing.

From friends of Trump?*

"This provides an additional market for US producers," said Anthony Marchese, chief executive of Texas Mineral Resources Corp, which is developing the Round Top mine in Texas with USA Rare Earth.

*Or perhaps, the US Army.

The Army says it will fund two-thirds of the cost for construction of a facility and will probably fund at least one project and possibly more. This will be the first time since the Manhattan Project that the military has invested in mass rare earths production.

[...]

While the rare earths industry had its start in the United States decades ago, China has taken over the global supply chain, including control of the cost. “Instead of providing funds for yet another study, this allocates money toward establishing a U.S.-based rare earth supply chain,” said Anthony Marchese, CEO of Texas Mineral Resources, which is developing the Round Top mine in Texas with USA Rare Earth.

  Digital Journal

...but hey, do what you want...you will anyway.

UPDATE 2/15/22: