Rare earth leverage: Trump softens stance ahead of Xi meeting
China's grip on rare earth minerals has made the Trump administration cautious toward Beijing ahead of a summit with Xi Jinping
Ahead of a summit between US President Donald Trump and Chinese President Xi Jinping, a shift is visible in relations between the two countries. China's strong hold over rare earth minerals appears to have led the Trump administration to avoid its usual aggressive stance against China. Against the backdrop of tensions in technology and trade, this shift is seen as significant, and it has drawn global attention to the current phase of US-China relations.
Rare earth minerals are used in electric vehicles, chips, advanced technology, defense equipment and various industrial products. China holds a major share at every stage, from mining these minerals to refining them and making magnets. In other words, China controls the entire chain, from extracting rare earth minerals from the ground to processing them into usable finished products. This gives China the ability to restrict or reduce the supply of these minerals, which is a major strategic strength.
After the US-China trade conflict intensified last year, China had imposed restrictions on rare earth exports. This affected the global supply chain as well, meaning not just the US but other countries dependent on these minerals also felt the impact. As a result, the US now has to weigh the potential consequences before putting major economic or technological pressure on China.
Ahead of the meeting with Xi Jinping, the Trump administration has not taken any steps such as imposing new major tariffs on China or placing broad restrictions on exports of American technology. This suggests that the current US stance toward China is comparatively cautious, and that the aggressive tone seen earlier has eased for now.
Along with rare earths, trade, artificial intelligence and the supply of critical minerals are also expected to be important issues in these talks. Since both countries are negotiating on all these issues at the same time, there is speculation that a major deal could emerge from the meeting.
Trump and Xi Jinping are scheduled to meet at the White House on September 24. Ahead of this meeting, senior officials from both countries are holding discussions on trade, AI and rare earth minerals.
Reducing dependence on China for rare earths remains a long-term challenge for the US. Until then, the supply of these minerals from China is likely to remain an important pressure point in US-China trade talks.
