What is China planning with its "strategic card" of rare earth?

(Dan Tri) - After nearly 2 months of tightening exports, President Trump confirmed that the Chinese President has agreed to continue selling rare earths to the US. Strategic minerals are gradually becoming Beijing's negotiating tool.

On June 6, on Air Force One, US President Donald Trump was asked whether Chinese President Xi Jinping would agree to continue selling rare earths and rare earth magnets to the US.

"Yes, he does," Mr. Trump replied. "We've made tremendous progress on the deal with China."

The comments came a day after a rare phone call between Trump and Xi amid escalating tensions between the two countries in recent weeks. After the call, Trump also said the conversation was “very positive,” stressing that “there should be no question” regarding the rare earth issue.

In April, China announced it would tighten exports of seven rare earth elements and related materials, including rare earth magnets, in response to US import tariffs.

In May, China's Ministry of Commerce issued a statement on Beijing's efforts to strengthen control over rare earth smuggling and stressed the need for the government to take measures to protect rare earths for national security purposes, according to China Daily. "All ministries agree that comprehensive control of strategic mineral resources is essential," the Ministry of Commerce said.

Previously, the US and China reached an agreement to temporarily suspend tariffs for 90 days. The reciprocal import tariffs of both countries will simultaneously decrease by 115%. Accordingly, the US will temporarily reduce import tariffs on Chinese goods from 145% to 30%. Meanwhile, China will also reduce from 125% to 10%.

Mr. Trump may face domestic political pressure if economic growth weakens due to businesses lacking raw materials for production (Photo: ST).

However, China appears to have yet to actually resume exports of a range of critical minerals and magnets, causing serious disruptions to supplies to automakers, computer chip makers and military contractors around the world.

At the height of the crisis, Mr. Trump accused China of violating the Geneva agreement and ordered restrictions on exports of chip design software and other shipments to China. Beijing responded by denying the accusations and threatening countermeasures.

Analysts say rare earths and other strategic minerals are becoming a bargaining chip for China. Mr Trump could face political pressure at home if economic growth slows as companies struggle to produce the materials they need.

Not only the US, officials and business leaders from many other countries such as the US, India, Japan and Europe have recently complained about China's tightening of rare earth exports. They believe that the shortage of rare earths will threaten key domestic industries.

China currently accounts for 90% of the global supply of rare earths, which are used in clean energy, defense and auto manufacturing. Companies have little alternative supply.

Source: https://dantri.com.vn/kinh-doanh/trung-quoc-dang-toan-tinh-gi-voi-quan-bai-chien-luoc-dat-hiem-20250607155129836.htm