As trade talks continue, China thinks it has leverage over U.S.

    Media: https://media3.giphy.com/media/v1.Y2lkPTcyYTQ4YTRmbWZhazY4bWJ4aXFiZmt0ODkzZnJwNHY2bGF5OHE5emJ1YWhsNDQ0dCZlcD12MV9naWZzX3NlYXJjaCZjdD1n/SdGXojrqygFilJw7Mp/giphy.gifTitle: China’s Strength in Trade Talks with U.S.: A Closer Look at Rare Earths and Historical Context

    As trade talks between the United States and China continue to unfold, it seems that China has found itself holding an unexpectedly strong hand. Despite facing economic challenges due to COVID-19, its economy appears to be bearing up better than expected. Moreover, China’s possession of rare earth elements gives them a significant advantage in these negotiations.

    Rare earths are critical minerals used in various high-tech products such as smartphones, electric vehicles, and military equipment. They play an essential role in modern technology, making them highly sought after by global powers like the U.S. However, China controls around 70% of the world’s rare earth production, giving it considerable leverage over countries that rely on these resources for their technological advancements.

    The historical context behind this situation is rooted in the Cold War era when both superpowers invested heavily in developing advanced technologies. This led to a race for dominance and control over strategic materials like uranium and rare earths, which China has managed to capitalize on today.

    Potential implications of this dynamic are far-reaching. If China continues to use its control over rare earths as leverage in trade negotiations with the U.S., it could significantly impact global supply chains and technological development. It may also lead to increased tensions between these two economic giants, potentially escalating into a new phase of geopolitical conflict.

    From my perspective, this situation highlights the importance of diversifying resources and investing in sustainable alternatives for critical minerals like rare earths. Additionally, it underscores the need for countries to collaborate rather than compete when it comes to accessing these vital materials. Only by working together can we ensure a stable supply chain that supports innovation while minimizing geopolitical risks.

    In conclusion, China’s strength in trade talks with the U.S., particularly its control over rare earth elements, presents both challenges and opportunities for all parties involved. It is crucial to understand this historical context and consider potential implications when making decisions related to global trade and technological development.

    Source: [Original Article](https://www.washingtonpost.com/world/2025/06/10/china-leverage-us-trade-war/) #trade

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