How China Could Wield Its Control of Rare Earths Against Trump

The delicate dance between the United States and China over rare earths has reached a critical juncture, with the fate of a temporary postponement of even tougher export controls hanging precariously in the balance. As the two nations prepare to meet for a high-stakes summit, the question on everyone's mind is whether China will agree to extend the reprieve, or use its control of the precious minerals to exert its influence over the global economy.

Rare earths, a group of 17 minerals essential for the production of high-tech electronics, renewable energy systems, and advanced military equipment, have long been a source of tension between the US and China. The US has accused China of using its dominance over the rare earth market to exert economic pressure on its rivals, while China has countered that its actions are necessary to protect its own national security interests.

According to a report by the Information Technology and Innovation Foundation, a Washington-based think tank, China's control of rare earths has allowed it to wield significant influence over the global supply chain, with the country accounting for over 90% of global production. The report notes that China's rare earth exports have been subject to strict controls, with the country imposing export quotas and taxes on the minerals.

As the US-China summit approaches, the stakes are high, with the two nations locked in a struggle for technological dominance. The US has accused China of stealing intellectual property and engaging in unfair trade practices, while China has countered that the US is trying to stifle its economic growth. The rare earths issue is just one aspect of a broader trade war between the two nations, with implications for global trade and economic stability.

According to a report by the Peterson Institute for International Economics, a Washington-based think tank, the US-China trade war has already had significant impacts on the global economy, with the US and China imposing tariffs on hundreds of billions of dollars' worth of goods. The report notes that the trade war has also had significant impacts on the US and Chinese economies, with the US experiencing a slowdown in economic growth and China facing a slowdown in its manufacturing sector.

As the US-China summit approaches, the rare earths issue is likely to be a major point of contention. China's control of the precious minerals has given it significant leverage over the global economy, and the country is unlikely to give up its dominance without a fight. The US, on the other hand, is likely to push for greater access to the rare earth market, in order to reduce its dependence on Chinese imports and promote its own economic growth.

The outcome of the summit will have significant implications for global trade and economic stability. If China agrees to extend the reprieve on rare earth export controls, it could help to ease tensions between the two nations and promote greater cooperation on trade and economic issues. However, if China refuses to budge, it could lead to a further escalation of the trade war and significant impacts on the global economy.