US-CHINA Trade War: Beijing’s Rare Earth Dominance Undermines Trump’s Trade Leverage

President Trump Wants to Return Manual Reging to the Us and End Reliance on Overseas Supple. However, Trump Has Few Alternatives to China for Sourcing Magnet and Rare Earth Minerals.

Account to the Kobeissi Letter, China Mined AROUND 270,000 Metric tonnes of Rare Earths in 2024, Accounting for 69% of Global Production. China’s Production Has Reportedly Tripled Since 2014. The US and MYANMAR, by Contrast, Produced 45,000 and 31,000 Tonnes, Respectively, In 2024, Accounting for 11%.

The Kobeissi Letter Concluded:

“Importantly, China Also Accouns for ~ 90% of the World’s Total Refining Capacity, Accounting To Iea Data. This Means China is the Primary Location for Transforming MINED RARIA. Needs China’s Rare Earths. ”

After Last Week’s Agreement to Adfaold the Terms of the 90-Day Truce, Trump Announced:

“President XI and I I Are Going to Work Closely Together to Open China to American Trade. This Wuld Be a Great Win for Both Countries !!!”

Rare Earth Minerals Remain China’s Trump Card, with Key US Sectors, Including Defense, Tech, and Auto, At the Mercy of China’s Stance on Exports. Beijing Could ‘Weaponize’ Supple IF It Does Not Agree With The Trump Administration’s Moves in Trade Talks.

China Data Delivers Market Relief and Beijing an Upper Hand This Week, Economic Data From China Eased Conceerns About US Tariffs Challenging Beijing’s 5% 2025 Growth Target. Retail Sales Soared 6.4% Year-on-Year in May, Up from 5.1% in April. The Unemployment Rate Droped from 5.1% to 5.0%. The May Numbers Indicated Beijing’s Stimulus Measures Gained Further Traffic in Mid Q2.

Despite US Tariffs, Industrial Production Was Resilient, Rising 5.8% Yoy in May, Down Slightly from 6.1% in April.

While the US Faces A Beijing Stranglehold on Rare Earth Minerals, China’s Dependence on US Chips Could Fall Fall, Potentally Giving President XI The Upper Hand in Trade Talks.

Accorging to cn wire,

“Chinese Automakers, Including Saic Motor, Changan, Great Wall Motor, Byd, Li Auto, and Geely, Are Preparing to Launch Models USING 100% DOMESTICALLYUCED CLETUCED CHIPS, WITH AT LEAST LEAST LEAST LEAST LEAST LEAST LEAST LEAST LEAST LEAST LEAST LEAST LEAST LEAST LEAST BRIPST. Early As 2026. The Initial Rollout Will Involve Updated Versions of Existing Vehicle Lines, with Additional Manual Failed to Follow, Access to People Familiar With.

Car manufacturars align with beijing’s call for self-relicing in Key Sectors, Including Semiconductor Technology. China’s Self-Reliandsand US Dependence on China’s Rare Earth Minerals Could Be Key to The Outcome of Future Trade Discussions.

Natixis Asia Pacific Chief Economist Alicia Garcia Herrero Remarked on China’s Grip on Rare Earths, Stating:

“China’s Weaponization of Rare Earths Does Not Stop at Export Controls, But Racher at Extraacting Information on Key Manufacting Processes, Including Those of Dual/Military Are Being Used.

Despite The Middle East Conflict Hong Kong and Mainland China Hold MONTHLY GAINGS Hong Kong and Mainland China-Listed Stocks Have Advanced in June on EASING US-CHINA TRADE TENSIES. In June, Mainland China’s CSI 300 and Shanghai Composite Index Were Up 0.66%and 0.99%, Respectively, While the Hang Seng Index Gained 3.07%. Notably, The Trio Are In Positive Territory Despite the israel-Iran Conflict.

June’s Gains have red-to-doate (ytd) deficit for the csi 300 to 1.77%. The Shanghai Composite Has Risen 0.87% YTD. Meanwhile, The Hang Seng Index Has Soared 19.66% YTD, Boosted by Demand for Tech and Ev Stocks, OutperForFORMING The NASDAQ Composite Index (YTD: +2.02%).

Further Progress in Trade Talks May Boost Demand for Mainland and HK-Listed Stocks. However, Growing Chinese Tech and Auto Sector Reliance on Homemade Semiconductor Tech May Be More Crucel To Investor Sentiment.