It’s been a very good week for President Xi Jinping.
A call with Donald Trump — which the Chinese side stressed was at the American’s behest — turns out to have paid off. After more than 20 hours of discussions cobbled together at short notice in London, negotiators from both sides succeeded in getting their earlier Geneva truce back on track.
For Beijing, it was a reminder of just how much leverage the nation’s dominance in rare earths is worth when it comes to negotiating trade deals, and not just with the US. Exports of rare-earth magnets are critical all over the world for things like cars, defense and robotics.
It’s unlikely to be the last time that China chooses to weaponize its advantage.
In exchange for what US officials say is a promise to speed up shipments of these materials, Washington assented to put export controls on the table by agreeing to roll back some measures.
Though curbs on the most advanced chips remain in place, this marks a uncommon departure from the US’s usual stance on these type of restrictions — an issue repeatedly cited by Chinese officials as holding back the country’s technological advance.
Just as China was showing off its hold over a key pain point in supply chains, Trump signaled his “America First” agenda may yield another win for Beijing.
The Pentagon launched a review of the Biden-era Aukus pact to develop nuclear-powered submarines with the UK and Australia, a key plank of defense in the Pacific against China’s increasingly expansive naval threat.
It’s a reminder that the US is no longer a reliable partner even for its long-time allies, just as China is getting ready to flex its advantages over global trade. — Rebecca Choong Wilkins