EconomyChina

FedEx adds China cargo flights ahead of Trump-Xi meeting

China's trade surplus reached $105 billion in October, while rare earth price gaps point to supply strain. FedEx added US-China cargo flights ahead of a possible Trump-Xi meeting.

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FedEx, a delivery firm headquartered in Memphis, announced Monday plans to run four flights a week between China and the US using Boeing 777 freighters. Shanghai and Guangzhou will be connected to America through these routes. The announcement lands only a few days ahead of a anticipated summit in Shenzhen, where Chinese President Xi Jinping is expected to sit down with US President Donald Trump.

The company said the extra space would support advanced manufacturing and semiconductor production. Separately, China's trade surplus, the amount by which its exports exceed its imports, reached $105 billion in October.

In numbers

$105 billionChina's October trade surplus
4 a weekNew FedEx cargo flights
200 acresUtah Army depot site

Rare earths are also drawing attention. The US Army has entered a non-binding term sheet, an early-stage outline rather than a final agreement, with REalloys (NASDAQ: ALOY). Under the proposal, 200 acres at the Tooele Army Depot in Utah would be made available through a lease that might last up to 75 years.

FedEx$319.70up +9.40%over 1 month
$329.40$290.5912 Oct11 Nov

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The plant would process dysprosium and terbium, two metals used in magnets for F-35 fighter jets, Tomahawk missiles and Virginia-class submarines. China produces almost all of both metals.

Rare earth elements currently sell for far more outside China than inside it, which points to worldwide competition for supply. Leaders from the United States and China may hold talks later this month, and the push to lock in materials is building before that.

What comes next

An expected meeting between Xi Jinping and Donald Trump is due in Shenzhen this month.

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Who is who

  • Xi JinpingChinese President
  • Donald TrumpUS President

Background

A trade surplus means a country exports more than it imports. Rare earths are used to make magnets in military equipment, and China produces almost all of two of them, dysprosium and terbium.

GuideEconomic calendar: the data and decisions coming up

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