China still has substantial leverage over the U.S. in its dominance of the rare earth minerals market, despite the two countries agreeing to a framework trade deal days before a meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
The meeting between the leaders, the first of Trump’s second term, is set to happen Thursday on the sidelines of the annual Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea.
It comes as the world’s two largest economies are embroiled in a trade war that has seen the countries levy tariffs higher than 100 per cent, threatening to rock the global economy — and revealing that China is willing to use its strengths as bargaining chips in the face of increasing economic threats from the White House.
New framework deal
There was, however, optimism that tariffs would be averted just days before Trump and Xi are slated to meet, after top officials from both countries announced a potential trade agreement following months of talks between officials, including in Geneva in May and Madrid in September.
“ The tariffs will be averted,” stated U.S. Treasury Secretary Scott Bessent, who, alongside U.S.
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