Beijing’s calculated use of rare-earth export controls has again become a key instrument in its competition with Washington. By imposing licensing requirements on rare-earth-related exports, the Xi administration sought to unsettle the Trump administration and gain leverage in trade negotiations.
It proved an effective strategy. During the U.S.-China talks on Oct. 25 and 26, the two sides reached a deal: China would postpone enforcement of the export restrictions for one year, while the United States also postponed its threat to apply 100% tariffs on Chinese imports.
Two days later, Chinese Premier Li Qiang signed a revised free-trade agreement with the Association of Southeast Asia Nations, asserting that expanding trade is a “legitimate right.” These actions illustrate Beijing’s steady pursuit of a familiar strategy — emphasizing multilateralism to contrast itself with U.S. unilateralism while consolidating a regional sphere of influence.
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