USTR’s Greer: Keeping the Strait of Hormuz open is crucial for China

United States Trade Representative (USTR), Jamieson Greer, said that managing and controlling economic relationship with China are the key to meeting US domestic objectives, Reuters reported on Friday. Greer added that keeping the Strait of Hormuz open is crucial for China. 

Key quotes

China is meeting its commitments on soybean buying. 

We are attempting to handle disputes on rare earths rather than intensify them. 

Significant shipments of Chinese yttrium have arrived in U.S. over recent weeks. 

China understands there will be some U.S. tariffs on Chinese products. 

Unable to pledge specific tariff rate on Chinese products. 

We want to prioritize items for buying from and selling to China. 

Acquisitions will be a sovereign choice for China. 

China could view U.S. lead in AI chips as risk to local manufacturing. 

Chip export controls not discussed at meeting. 

U.S. export restrictions on chips were not a key focus of talks. 

Chinese rules on supply chain moving out of China a significant worry. 

Taiwan issue unlikely to impact board of trade talks. 

Managing and controlling economic ties with China key to meeting US domestic objectives. 

Keeping the Strait of Hormuz open is crucial for China. 

On Chinese involvement with Iran, our view is that China is acting very pragmatically. 

Market reaction

As of writing, the AUD/USD pair is down 0.12% on the day at 0.7212.