Rare earths friction threatens to stall trade truce extension ahead of Xi-Trump summit

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Por Nayan SethSouth China Morning Post – News feed

Advertisement 2026 Xi-Trump summits China Diplomacy Rare earths friction threatens to stall trade truce extension ahead of Xi-Trump summit

US Trade Representative blames China for creating ‘uncertainty’ but observers point to benefits for both sides in delaying agreement

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China controls much of the world’s processing capacity for rare earths, which are vital for defence systems, robotics and electric vehicles. Photo: Getty Images

Nayan Seth in Washington Published: 10:59am, 22 Sep 2026 Updated: 11:11am, 22 Sep 2026 The US and China continue to wrangle over extending the 2025 Busan trade agreement just hours before Chinese President Xi Jinping arrives in Washington for a state visit, even as they report progress on implementing a narrow tariff-reduced trade mechanism. US Trade Representative Jamieson Greer on Monday blamed China for creating “uncertainty” over the pact’s extension, saying Beijing was still holding out on supplying enough strategic mineral exports to the United States.

“They have limited rare earth exports. They’ve controlled them,” Greer said in an interview with Bloomberg News.

“President Xi and President Trump have a good relationship, but we need these extensions or other things to go incrementally to make sure that there’s compliance.”

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Fonte: South China Morning Post – News feed

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