Core Points - The absence of U.S. Commerce Secretary Wilbur Ross from the U.S.-China trade talks in Kuala Lumpur has raised concerns, revealing internal power struggles within the White House regarding China policy [1][6] - The "50% rule" introduced by Ross, which imposes export controls on companies with over 50% Chinese ownership or technology, has led to a significant increase in the number of Chinese companies under U.S. sanctions, contradicting previous agreements [3][6] - China's countermeasures, including enhanced export controls on rare earth materials, have targeted critical supply chains for U.S. defense industries, highlighting the U.S.'s reliance on Chinese technology [3][8] Group 1 - The "50% rule" has resulted in thousands of additional Chinese companies being added to the U.S. export control list, undermining prior agreements made in Madrid [3] - The U.S. underestimates China's ability to retaliate, as evidenced by the significant financial impacts on U.S. companies due to China's countermeasures [8] - The U.S. Treasury Secretary and Trade Representative have replaced Ross as key negotiators, indicating a shift towards a more pragmatic approach in trade discussions [6] Group 2 - The trade war has caused over $12 billion in losses for U.S. companies, with agricultural states experiencing declining support due to halted soybean exports [8] - The U.S. has announced it will not consider imposing a 100% tariff on Chinese goods, reaching preliminary agreements on agricultural trade and fentanyl cooperation, though deeper issues remain unresolved [9] - The dual strategy of negotiation and pressure continues, as evidenced by threats to limit software exports to China, which has been met with strong opposition from Chinese officials [8][9]