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

Republican Senator Steve Daines, a close associate of President Donald Trump and a vital link between the United States and China, has urged both nations to maintain engagement and refrain from retreating in the face of disagreements, including those concerning rare earth supply chains. Daines informed the South China Morning Post that there were still unresolved issues from before Chinese President Xi Jinping's recent visit to Washington, and that they would continue addressing them post-summit.

"That's why it's really important to keep the dialogue going between two countries because both sides admit we've got some serious differences," he said. The comments by Daines and US Ambassador to China David Perdue highlight that rare earths continue to be a significant source of contention between the two countries and will be a key topic during their upcoming meetings.

Xi and Trump have set a date for another meeting next month at the Apec gathering in Shenzhen, followed by another in December at the Group of 20 summit in Miami, Florida. Both countries have agreed to continue working on concerns such as supply chain shortages related to rare earths and other critical minerals, aiming to ensure shipment levels return to appropriate levels.

Daines played a crucial role in facilitating communication between Beijing and Washington in the lead-up to Xi's visit, helping to reconcile differences on key issues. He was the sole US senator invited to the White House state dinner for the Chinese leader, who was attended by numerous prominent American tycoons. On Wednesday, Daines also participated in Chinese National Day celebrations at the Chinese embassy in Washington, where he was seen sitting next to Beijing's envoy, Xie Feng.

Prior to the summit, Washington had been urging Beijing to expedite approvals for rare earth exports due to worries over insufficient supplies reaching the US. During Xi's visit, access to rare earths remained a top priority for Washington, and both sides announced a two-month extension of last year's trade agreement, which included China's pledge to increase critical metals supplies to the US.

The October 2025 truce, reached in Busan, helped avert a broader crisis following Trump's "Liberation Day" tariffs in April. China holds control over a substantial portion of the world's rare earth processing, giving them leverage over heavy rare earths used in high-performance magnets for defense systems, robotics, and electric vehicles.

China's rare earth magnet shipments to the US decreased by 13% year-on-year to 512 tonnes in August. The Busan deal saw the US cut tariffs on certain Chinese goods, while additional US restrictions and specific Chinese controls on rare earth exports were suspended. China also agreed to purchase US soybeans and curb shipments of fentanyl precursors.

Daines, when asked about the uncertainty surrounding US arms sales to Taiwan, stated that Trump was the only person who could provide an answer, adding that it would remain an ongoing topic. The SCMP reported that the US is contemplating postponing the announcement of significant arms sales to Taiwan until after the November Asia-Pacific Economic Cooperation summit, potentially extending the delay until the end of the year.

The White House had previously paused a $14 billion arms package of advanced air and missile defense systems, including PAC-3 Patriot interceptors and the National Advanced Surface-to-Air Missile System, for Taiwan shortly before Trump's trip to Beijing in May, despite congressional approval. In their meeting on September 24, Xi urged Trump to explicitly oppose Taiwan independence, as Beijing considers Taiwan to be part of China and would reunite it by force if necessary.

Most countries, including the US, do not recognize Taiwan as an independent state, but Washington maintains a commitment to supplying it with weapons. Daines weighed in on the US ambassador's remarks in an interview with Fox News, acknowledging that Trump had suggested selling weapons to China during his meeting with Xi. He emphasized that he would not take Trump's statements literally, but noted that "he’ll throw ideas out there to kind of mix it up."

Trump denied discussing arms sales with Xi on Monday, though he suggested that China might consider purchasing them instead, as US-made equipment is reportedly superior.