President Donald Trump’s second term has thrust rare‑earth minerals and AI‑chip exports into the center of a high‑stakes trade showdown with China. After Beijing imposed a sweeping ban on exporting rare‑earth processing equipment, Trump responded by leveraging export controls on Nvidia’s H20 AI chips as a bargaining chip. The move reflects a broader strategy to secure critical mineral supplies while maintaining America’s AI technological edge .
The rare‑earth export curbs came just ahead of a scheduled meeting between Trump and Xi Jinping, underscoring China’s intent to tighten its grip on global supply chains. By requiring export licenses for any product containing Chinese rare‑earth minerals, Beijing aims to protect its strategic interests and strengthen its negotiating position in upcoming talks at the APEC summit .
In parallel, the Trump administration has signaled openness to a new trade deal, suggesting that a “possible” agreement could emerge despite ongoing tensions. While earlier tariff escalations and retaliatory measures have kept the trade war volatile, recent diplomatic gestures hint at a recalibration toward mutual concessions .
The interplay between AI‑chip exports and rare‑earth access illustrates how technology and resources are now weapons in geopolitical contests. As the United States seeks alternative mineral sources and bolsters domestic processing capabilities, the outcome of these negotiations will shape not only trade balances but also the future of AI innovation and industrial sovereignty .
