US and Chinese Leaders to Seal Rare Earth Deal Amid Global Economic Tension
A meeting between President Donald Trump and Chinese leader Xi Jinping could signal an end to months of global economic uncertainty sparked by the US-China trade war. Officials from both sides have been working out the contours of a potential trade agreement, which would ease tensions in the two superpowers.
The leaders' first face-to-face talks since 2019 are seen as an opportunity to reset their relationship and address longstanding issues with China's technological advancements and trade imbalance. The meeting is taking place on the sidelines of the Asia Pacific Economic Cooperation summit in Seoul.
Rare earths, a critical mineral used in car manufacturing and military equipment, has been at the forefront of talks between Washington and Beijing. The US has long relied on China for these minerals, but with growing concerns about national security, Trump's administration has imposed restrictions on their export. In response, China increased its own restrictions, prompting fears of a global trade war.
However, preliminary talks in Kuala Lumpur suggest that Beijing may agree to defer its new export controls in exchange for Washington freezing the new chip export controls. If successful, this deal would be a win-win for both economies. Yet, hawks in Washington are warning that such an agreement could damage the US's long-term security by loosening control over advanced AI research.
Trump has struck a conciliatory tone with Xi on rare earths, but his stance on Taiwan remains inconsistent, sparking concerns about the stability of the region. Beijing claims Taiwan is a province of China and may use military force to annex it if necessary. The US is Taiwan's most important ally in resisting such threats, but Trump's shifting position has prompted reassurances from other administration members.
The meeting also includes discussions on fentanyl control and the finalization of the TikTok deal agreed upon in Madrid. While specifics are yet to be announced, officials believe that both sides will focus on underlining the potential for constructive talks between the world's two most powerful leaders.
A meeting between President Donald Trump and Chinese leader Xi Jinping could signal an end to months of global economic uncertainty sparked by the US-China trade war. Officials from both sides have been working out the contours of a potential trade agreement, which would ease tensions in the two superpowers.
The leaders' first face-to-face talks since 2019 are seen as an opportunity to reset their relationship and address longstanding issues with China's technological advancements and trade imbalance. The meeting is taking place on the sidelines of the Asia Pacific Economic Cooperation summit in Seoul.
Rare earths, a critical mineral used in car manufacturing and military equipment, has been at the forefront of talks between Washington and Beijing. The US has long relied on China for these minerals, but with growing concerns about national security, Trump's administration has imposed restrictions on their export. In response, China increased its own restrictions, prompting fears of a global trade war.
However, preliminary talks in Kuala Lumpur suggest that Beijing may agree to defer its new export controls in exchange for Washington freezing the new chip export controls. If successful, this deal would be a win-win for both economies. Yet, hawks in Washington are warning that such an agreement could damage the US's long-term security by loosening control over advanced AI research.
Trump has struck a conciliatory tone with Xi on rare earths, but his stance on Taiwan remains inconsistent, sparking concerns about the stability of the region. Beijing claims Taiwan is a province of China and may use military force to annex it if necessary. The US is Taiwan's most important ally in resisting such threats, but Trump's shifting position has prompted reassurances from other administration members.
The meeting also includes discussions on fentanyl control and the finalization of the TikTok deal agreed upon in Madrid. While specifics are yet to be announced, officials believe that both sides will focus on underlining the potential for constructive talks between the world's two most powerful leaders.