Rare earths force Trump to be less hostile before Xi summit

Ahead of his summit with Chinese President Xi Jinping, US President Donald Trump has adopted a less confrontational stance than in previous meetings, according to China experts. This shift in approach is attributed to China's dominant control over rare earth minerals, crucial for various industries. Last year, China restricted rare earth exports in retaliation against US tariffs, causing market instability.

This situation has empowered China, making it difficult for the US to employ aggressive coercion, as they anticipate backing down due to the recent rare-earth export controls. Emily Kilcrease, a former trade official, noted that the US and Trump administration are in a different position with China, unable to resort to overly coercive measures.

The White House and relevant departments have not commented on the matter. China's dominance in rare earth production is substantial, controlling up to 70% of global mining, 85% of refining capacity, and 90% of production of rare-earth metal alloys and magnets. Trump and Xi are set to meet at the White House on Thursday, followed by a state dinner.

In recent actions against China, the Pentagon accused several companies of aiding the Chinese military, and the Treasury threatened sanctions against Chinese AI companies copying US models. Experts believe these actions are less aggressive than past threats to avoid antagonizing Beijing. The US-China trade and tech rivalry has persisted since Trump's first term, with tensions often rising before summits and subsiding afterward.