• China is putting restrictions on very small amounts of rare earths
• Asked about the US restricting chips, says ‘everyone does that’
• China realized they over-stepped and started to qualify what they’d done
• The President is a deal-maker
• We’ve been successful in finding a path forward
• China’s reactions are completely disproportionate
• We had senior staff talks yesterday
• Calls it a ‘major escalation’
• November 1 tariffs depends on what China does
• We’re trying to have a good relationship with the Chinese
• We want to make sure markets are responding to ‘appropriate information’

It sounds like they’re leaning on China to back down but it’s not clear what China would want in return. The market took some of the things at face value like ‘China overstepping’ and that’s further lifted risk assets.

This article was written by Adam Button at investinglive.com.