Trump faces China rare earth dependence as US mining projects lag ahead of Xi Jinping meeting

Résumé détaillé

Trump faces China's rare earth dominance as delayed US mining projects leave American industries dependent on Chinese critical minerals ahead of the Xi meeting.

US President Donald Trump is preparing to meet Chinese President Xi Jinping this week. However, one major part of Trump's trade strategy remains unfinished: reducing America's dependence on China for critical minerals.

The US wants to build its own supply of critical minerals so that American companies do not have to depend heavily on China for these materials, according to Reuters. Several US mining projects are still years away from starting production, even after the Trump administration invested billions of dollars in the sector.

These minerals are important for making semiconductors, robots, military weapons and equipment, and products used in the artificial intelligence (AI) industry.

This dependence makes it difficult for Trump to take a tough position against China during trade talks. If he puts too much pressure on Beijing through tariffs or export restrictions, China could limit America's access to important minerals, magnets and chemical materials that the US does not produce in sufficient quantities, according to six analysts interviewed by Reuters.

China is the world's largest producer of rare earth minerals. These materials are used in several important industries, including technology, electric vehicles and defence. Last year, China restricted exports of rare earth minerals and magnets. This disrupted production at Ford Motor and other American manufacturing companies, according to Reuters.

The US had to negotiate with China to ensure that American companies continued receiving these important materials.

Rich Nolan, head of the National Mining Association, said China has been using its control over critical minerals to put pressure on the US whenever it wants, according to Reuters.

The US is struggling to increase its own production of critical minerals because it has spent many years without building a strong mining and processing industry.

Samir Kapadia, head of trade at Washington-based business advisory firm Vogel Group, said there are currently more…

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