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Daily News Brief

June 6, 2025

Welcome to CFR’s Daily News Brief. Today we’re covering plans for another round of U.S.-China trade talks, as well as...

  • India’s approach to rare earth processing
  • U.S. sanctions on ICC judges
  • Trump’s cooling to Russia-Ukraine peacemaking
 
 

Top of the Agenda

U.S. President Donald Trump said yesterday that he had a "very positive" call with Chinese President Xi Jinping and that their trade teams would meet "shortly." It was the leaders’ first publicly reported conversation since Trump took office and comes as bilateral trade relations have soured in recent months. Though the countries announced an interim economic deal on May 12 to reduce tariffs, tensions have flared as each accused the other of violating it.  

 

The details. 

 

  • Trump wrote on social media that the call resolved questions about “the complexity of Rare Earth products,” without giving details. The United States upped its restrictions on the semiconductor sector in recent weeks while China curbed exports of rare earth magnets, which are used in products such as cars and semiconductors. 
  • Trump said the conversation focused almost entirely on trade, but Chinese state media reported that Xi warned Trump against allowing “a dangerous situation of conflict and confrontation” over Taiwan. Trump did not mention the island in his post-call remarks. 
  • Though the Trump administration recently announced it would revoke the visas of Chinese international students, China’s readout of the call said Trump told Xi that Chinese students are welcome in the United States.
  • Trump said he and Xi had invited each other to visit their respective countries.

 

The big picture. 

 

  • China’s tightening of restrictions on rare earth exports has rippled across global manufacturing. Multiple European auto sector plants suspended output this week.   
  • China is just one of several U.S. trade partners with which apparent progress on trade has proved elusive. Nikkei reported yesterday that trade talks with Japan have been slowed by open disagreements between Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. All three officials will take part in the upcoming trade talks with China, Trump said yesterday. 
 
 

“The best way to understand the current standoff with China is as the product of faulty assumptions and missteps on both sides. Within Trump’s orbit, powerful players and factions misjudged the resilience of China’s economy and wrongly assumed that Chinese leader Xi Jinping would rush to make a deal in order to avoid a domestic backlash. As a result, China hawks in Washington failed to anticipate how resolutely Beijing would react to Trump’s tariffs. In China, meanwhile, a deficit of skilled diplomacy has left the country more adept at signaling defiance than at shaping outcomes.” 

—CFR expert Zongyuan Zoe Liu, Foreign Affairs

 

A Timeline of U.S.-China Relations

U.S. President Donald Trump attends a bilateral meeting with China's President Xi Jinping during the G20 leaders summit in Osaka, Japan, June 29, 2019.

Kevin Lamarque/File photo/Reuters

The United States and China have one of the world’s most important and complex bilateral relationships. Since 1949, the countries have experienced both tension and cooperation over issues including trade, climate change, and Taiwan, CFR editors write in this timeline.

 
 

Across the Globe

Trump’s stance on Ukraine. NATO agreed yesterday to expand its ground-based air defense capabilities five-fold, Bloomberg reported. The move came as German Chancellor Friedrich Merz was at the White House seeking a more active U.S. role in pressuring Russia toward peace in Ukraine. After months of pushing for peace talks, Trump yesterday compared the war to a children’s brawl, saying it is sometimes better to let children “fight for a while” before “pulling them apart.” 

 

Sanctions on ICC judges. Washington announced sanctions on four International Criminal Court (ICC) judges yesterday, calling recent ICC investigations of Israel’s war conduct in Gaza and the United States’ war conduct in Afghanistan “illegitimate.” The court condemned the sanctions, which it called “a clear attempt to undermine” its independence.

 

Pyongyang-Moscow bond. North Korea will “unconditionally support” Russia’s war against Ukraine, North Korean leader Kim Jong-un pledged during a meeting with Russia’s security council secretary in Pyongyang. Both countries acknowledged in April that North Korean troops had been deployed to participate in Russia's war in Ukraine; last October the Pentagon estimated they numbered around ten thousand. 

 

India’s rare earth approach. New Delhi is holding talks with companies about creating a long-term reserve of rare earth magnets and is considering tax breaks for firms that produce the magnets domestically, unnamed sources told Reuters. If successful, the stockpile would reduce India’s reliance on China. India’s heavy industry ministry did not comment. 

 

Israel backs armed Gaza groups. Israel has “activated” some groups inside of Gaza to oppose Hamas, Prime Minister Benjamin Netanyahu said yesterday after the news was leaked by a political opponent. Unnamed Israeli officials told Ynet that one such militia is run by local clan leader Yasser Abu Shabab; some Palestinians have accused the group of looting aid in the past. In recent weeks, Abu Shabab’s group said it was protecting aid shipments.

 

Ghana supports Western Sahara plan. Ghana yesterday became the latest country to endorse Morocco’s plan to settle the disputed status of the Western Sahara region, where Algeria-backed separatists seek independence. The plan—which is backed by Kenya, the United Kingdom, and the United States—would allow Morocco to maintain sovereignty over the region but give it greater autonomy.

 

Coal power in China. China approved more coal power plant capacity in the first quarter of 2025 than it did in the first half of 2024, according to a new Greenpeace report. The uptick threatens China’s recent progress toward green energy; 2024 saw Beijing’s new coal approvals decline on a year-on-year basis. China has set a 2030 target for its carbon emissions to peak.


Responses to U.S. migration curbs. The African Union urged dialogue and called for the United States to protect its borders in a way that is “balanced, evidence-based, and reflective of the longstanding partnership between the United States and Africa” after Trump announced a travel ban Wednesday night affecting multiple African countries. Trump simultaneously announced a ban on entry for Harvard University international students, but a judge temporarily blocked it yesterday.  

 
 

The Geopolitics of Critical Minerals

A villager shovels cast-off tailings of crushed mineral ore that contain rare earth metals in front of a rare earth smelting plant in Xinguang Village, located on the outskirts of the city of Baotou in China's Inner Mongolia Autonomous Region in this October 31, 2010 picture.

David Gray/Reuters

Global chokepoints in critical mineral supply can be a byproduct of where the minerals come from as well as where they are refined. David S. Abraham, Gracelin Baskaran, Helaina Matza, and Laura Taylor-Kale discussed how the U.S. critical minerals approach stacks up to those of other countries at this CFR meeting.

 
 

What’s Next

  • Today, Argentine president Javier Milei visits Italy.
  • Today, U.S. Defense Secretary Pete Hegseth participates in D-Day anniversary commemorations in Normandy.
  • Tomorrow and Sunday, the French Open holds women’s and men’s singles final matches in Paris.
 
 

Germany’s Rearmament

The President's Inbox

German chancellor Merz has vowed to increase the country’s military readiness following Trump’s calls for Europe to step up security spending. Carnegie’s Sophia Besch discussed the shift on this episode of The President’s Inbox.

Listen
 
 

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