US President Donald Trump is taking a more measured approach toward China ahead of his September 24 meeting with Chinese President Xi Jinping, with Beijing’s dominance of critical minerals emerging as a major source of leverage.
Unlike previous periods of heightened tensions, Washington has so far avoided introducing sweeping new tariffs or major technology restrictions immediately before the summit. Analysts say the shift reflects concerns that aggressive measures could trigger another disruption in the supply of rare-earth materials.
China controls a dominant share of the global rare-earth supply chain, including mining, refining and the production of magnets used in automobiles, electronics, semiconductors and defence equipment.
The issue has become particularly sensitive after previous Chinese export restrictions exposed the vulnerability of industries that depend on Chinese supplies. Chinese shipments of rare-earth magnets to the US also fell in August, according to Chinese customs data, adding pressure ahead of the talks.
The upcoming Trump-Xi summit is expected to cover rare earths, tariffs, artificial intelligence, trade and other areas of strategic competition. US Treasury Secretary Scott Bessent has already been holding discussions with Chinese Vice Premier He Lifeng ahead of the leaders’ meeting.
The White House is also seeking greater certainty over supplies of critical minerals while Washington works to reduce its dependence on Chinese-controlled supply chains.
The situation creates a delicate balance for the Trump administration: maintaining pressure on Beijing while avoiding measures that could provoke retaliation or disrupt access to materials vital to American manufacturing and technology.
The September 24 summit is therefore expected to test whether Washington and Beijing can extend their fragile trade truce while addressing the increasingly important battle over critical minerals and advanced technology.
