The leaders of the United States and China, Donald Trump and Xi Jinping, appeared to set their trade war aside at a meeting this week in South Korea. Officials suggest their agreement could evolve into a strategic reset for the countries—though many analysts believe tensions over trade and other issues will persist.

The leaders of the United States and China, Donald Trump and Xi Jinping, appeared to set their trade war aside at a meeting this week in South Korea. Officials suggest their agreement could evolve into a strategic reset for the countries—though many analysts believe tensions over trade and other issues will persist.

Is China deliberately exploiting the world’s dependence on its rare earths? How do Trump’s and Xi’s governments relate to each other? And who has the advantage in the U.S.-China trade war?

Those are just a few of the questions that came up in my recent conversation with FP economics columnist Adam Tooze on the podcast we co-host, Ones and Tooze. What follows is an excerpt, edited for length and clarity. For the full conversation, look for Ones and Tooze wherever you get your podcasts. And check out Adam’s Substack newsletter.

Cameron Abadi: Is China weaponizing dependence on its rare earths? In some sense, did China develop its controlling stake in rare-earth supplies to get the kind of political leverage it’s been using?

Adam Tooze: I think it’s clear they understood the strategic value. The real puzzle is why other people didn’t. This does give them a tactical weapon, and they have used it. This is the third time.