Rare Earths Deal Holds Ahead of Trump-Xi Summit as World Watches Trade War Risks
May 10, 2026 — A senior U.S. official confirmed that the rare earths deal between the United States and China remains in effect, underscoring the continued importance of one of the most sensitive economic issues between the world’s two largest powers.
The remarks come just days before the anticipated summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing on May 14–15, amid rising trade and geopolitical tensions between Washington and Beijing.
According to Reuters, the U.S. official said the agreement “remains in force,” adding that discussions are ongoing and any decision regarding an extension would be announced “at the appropriate time.”
Rare Earths Deal Returns to the Center of US-China Competition
The rare earths deal represents one of the most strategically important files between Washington and Beijing due to the critical role these minerals play in technology, defense and clean energy industries.
China controls a significant share of the global rare earth supply chain, giving Beijing considerable economic leverage in its competition with the United States and other industrial powers.
Why are rare earth minerals causing concern?
Rare earth elements are essential components in strategic industries, including:
- Semiconductors and advanced chips
- Batteries and electric vehicles
- Defense systems and missiles
- Smartphones and electronics
- Renewable energy technologies
Over recent years, rare earths have increasingly become a geopolitical pressure tool between Washington and Beijing, particularly after the trade war that saw tariffs, sanctions and threats to restrict global supply chains.
Analysts warn that any disruption to the rare earths deal could directly impact global manufacturing industries and critical technology supply chains.
Observers also believe competition over rare earth minerals has become part of a broader strategic rivalry between the United States and China involving technology, trade and global influence.
This aligns with previous analysis on the growing US-China Cold War 2.0 dynamic, as competition expands across trade, advanced technology and strategic supply chains.
The importance of rare earths is also increasing alongside the global artificial intelligence race, particularly after China launched a new AI model following DeepSeek, reinforcing the strategic importance of raw materials used in advanced technology industries.
| Issue | Strategic Importance |
|---|---|
| Rare earths | Technology and defense industries |
| Trade | Preventing further trade escalation |
| Taiwan | Sensitive geopolitical and security issue |
| Iran | Regional conflict and energy implications |
New trade talks ahead of Trump’s China visit
Alongside the upcoming summit, China’s Ministry of Commerce announced that Vice Premier He Lifeng will lead a delegation to South Korea for trade talks with U.S. officials on May 12–13.
The ministry said discussions will focus on economic and trade issues of mutual concern following previous agreements reached during calls and meetings between the two leaders.
Reuters also reported that the White House invited a small group of top American executives to accompany Trump during his expected visit to Beijing.
Can the summit ease tensions?
The Trump-Xi summit is expected to address several highly sensitive issues, including trade, Taiwan and the conflict linked to Iran, making it one of the most significant meetings between the two countries in recent years.
Observers believe the continuation of the rare earths deal may serve as an early indication that both sides are seeking to avoid a broader economic escalation that could threaten global markets and supply chains.
What comes next?
Attention is now turning toward the outcome of the upcoming U.S.-China summit and whether it can preserve trade and rare earth agreements, or whether competition between Washington and Beijing is heading toward a sharper and more confrontational phase in the months ahead.
