‘No retreat’: Key Trump ally urges continued US-China engagement on rare earths

US Republican Senator Steve Daines has urged the United States and China to maintain engagement despite their differences, particularly regarding rare earth supply chains. Daines, a close ally of President Trump, stated that both countries must continue working together to address their serious issues, rather than retreating. This sentiment comes in the wake of US Ambassador to China David Perdue's accusation that Beijing is "weaponising" its dominant position on critical minerals against the rest of the world.

The issue of rare earths has been a major sticking point between the two nations, and it will be a key topic for their upcoming meetings. The next APEC gathering in Shenzhen, followed by the Group of 20 summit in Miami, will see both leaders meeting again in the coming months. Daines played a crucial role in facilitating talks between Washington and Beijing before Xi's state visit, helping to reconcile differences on key issues.

He was invited to the White House state dinner for Xi, which was attended by numerous prominent Americans. Rare earths access remained a top concern for Washington during Xi's visit, with both sides agreeing to extend last year's trade agreement to increase critical metals supplies to the US. China controls a significant portion of the world's rare earth processing, particularly heavy rare earths used in defense systems, robotics, and electric vehicles.

The issue of US arms sales to Taiwan has also been a point of contention, with discussions surrounding possible delays to major arms sales packages.