The Rare Earths Game: China's Strategic Hold

China and the United States are locked in a high-stakes game over rare earth minerals. These minerals are crucial for many industries, from cars to military tech. The US has been pushing China to ease restrictions on these exports. The US President recently claimed that China's leader had agreed to restart the flow of these vital materials. However, experts are skeptical about whether China will give up its powerful leverage. The US has been frustrated by China's slow approval process for rare earth exports. This has led to a backlog of applications and uncertainty for American businesses. China, on the other hand, sees these minerals as a strategic asset. It has been using them as a bargaining chip in the ongoing trade dispute with the US. China controls about 90% of the global processing of rare earths. This gives it a significant advantage in the trade talks. The US has been eager to resolve this issue. It has even linked it to other trade restrictions that China wants lifted. Chinese officials have been vague about the details of the agreement. They have not confirmed that they will restart the flow of rare earth minerals. Instead, they have focused on the broader trade truce agreement. Some Chinese scholars have suggested that China is not ready to give up its leverage. They may use it to get the US to ease its own export controls. These controls aim to block China's access to advanced US technologies. The US has been restricting China on chips and jet engines. China sees this as a reason to use its rare earth card. The export licensing regime in China is complex. Applications can take up to 45 working days to be approved. This process can be sped up or slowed down depending on the overall trade atmosphere. Some Chinese suppliers have recently received six-month export licenses. However, uncertainty remains due to the large backlog of applications. The strict licensing system has disrupted global supplies. This has raised alarms among officials and businesses in America and Europe. The European Union has also expressed concern about the situation. It has urged China to address the issue and expedite approvals. The US and China are set to hold another round of trade talks. The US has included its Commerce Secretary in the delegation. This suggests that US export controls may be up for negotiation. China has insisted that its export controls are in line with international practices. It has also said that they are not targeted at any specific country. However, the US and other countries see it differently. They view China's actions as a strategic move in the trade dispute. The outcome of the trade talks will depend on how both sides navigate this complex issue. It is a game of strategy and leverage, with rare earth minerals at the center.