U.S. President Donald Trump’s push to secure rare earth supply deals across Asia will ultimately weaken China’s dominance in the global supply chain for critical minerals — but analysts said the buildup will take years.
Over 10 days, Trump cemented deals with Australia, Malaysia, Cambodia and most recently, Japan, to bolster the supply of rare earths and other critical minerals that are crucial for the making of batteries, automobiles, defense systems and computing chips.
The flurry of deals — part of Washington’s bid to counter Beijing’s chokehold on the sector — comes ahead of his meeting with Chinese President Xi Jinping in Busan on Thursday.
The deals may “benefit immensely from being linked together in a plurilateral agreement with strong commitments, financing and pooling of resources,” said Wendy Cutler, senior vice president at Asia Society Policy Institute. She expects more of such deals to follow under the Trump administration.
Trump and Xi are expected to address several contentious issues that have stalled the long-running trade talks, including Beijing’s rare earth export controls and Washington’s tariff threats and technology restrictions.
