Trump adopts less aggressive stance ahead of Xi summit, and rare earth minerals explain why

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President Trump is heading into his next meeting with Chinese President Xi Jinping with notably fewer verbal grenades than usual. The September 24 summit, expected to cover trade truce extensions, tariffs, and critical mineral access, comes with a diplomatic temperature several degrees lower than past encounters. The rare earth reality check China controls roughly 70% of global rare earth mining capacity, according to consultancy AlixPartners. Beijing also commands approximately 85% of global rare earth refining capacity. And when it comes to the finished product, rare earth metal alloys and magnets, China’s share climbs to around 90%. Those magnets aren’t decorating refrigerators. They’re inside F-35 fighter jets, electric vehicle motors, wind turbines, smartphones, and MRI machines. This supply chain reality has historically given Beijing a powerful card to play during trade disputes. And right now, with a one-year suspension of Chinese rare earth export controls set to expire around November 2026, just two months after the summit, the timing makes that card especially relevant. Trump has refrained from imposing new tariffs or export bans in the lead-up to the meeting. That’s a n...

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