United States and China talks stall over rare earth supply dispute

Representatives from the U.S. and China have held a series of meetings to discuss trade and security concerns. U.S. delegates met with Chinese leaders to discuss trade and security in the first U.S. House delegation to China since 2019. 

The rare earths dispute between the United States and China remains unresolved, despite a series of high-level meetings in Beijing this week. Representative Adam Smith, the top Democrat on the House Armed Services Committee, confirmed that talks have not led to progress on the issue.

U.S. and China fail to iron out rare earths dispute

Smith is leading the first official U.S. House delegation to China since 2019. The visit included meetings with Premier Li Qiang and other senior officials. A major goal of the visit is to stabilize relations ahead of a potential meeting next month between President Donald Trump and President Xi Jinping in South Korea.

At a press briefing on Tuesday, Smith acknowledged that no breakthrough on the dispute had been reached.

“I don’t think we resolved the rare earth question. I think that still needs to be worked on,” he said.

Back in June, China and the United States reached an agreement, under which Beijing committed to reviewing applications for exports of rare earth magnets.

Few details of that deal have been disclosed, but Trade Representative Jamieson Greer recently said that rare earth shipments to the U.S. had “bounced back up significantly.”

Meanwhile, European manufacturers have complained of shortages and have warned that supply constraints could disrupt production across several industries.

Dialogue continues about trade, TikTok, and aircraft deals

Beyond minerals, the delegation also discussed technology and trade. Smith was asked whether TikTok’s Chinese parent company, ByteDance Ltd., would maintain any role in the app’s U.S. algorithm under the pending arrangement. He described the matter as “not 100% resolved” and cited ongoing concerns about privacy and security, though he noted that he was not directly involved in negotiations.

The Trump administration has been pushing for TikTok’s U.S. operations to be separated from ByteDance and placed under American ownership. According to White House Press Secretary Karoline Leavitt, the emerging deal would give a consortium led by Oracle Corp. majority control of the platform, though many details have yet to be finalized.

Another major item on the agenda is a long-awaited Boeing Co. aircraft order. The U.S. Ambassador to China David Perdue told reporters the two governments are in the final stages of negotiating what he described as a “huge” purchase that is years in the making.

Security concerns were also addressed during the discussions. Smith pressed Chinese officials on what he described as Beijing’s rapidly expanding nuclear arsenal.

“When you’re getting up into the hundreds, close to 1,000 on nuclear weapons, it’s time to start having a conversation,” he said.

Smith added that deeper military-to-military communication was critical and that he had delivered this message directly in meetings with Chinese leaders.

The delegation raised other sensitive issues, including the flow of fentanyl precursors from China, which Washington has linked to America’s opioid crisis, and the need for fairer market access for U.S. companies operating in China.

In the coming days, the group is scheduled to meet with National People’s Congress Chairman Zhao Leji and Foreign Minister Wang Yi, according to Vice Premier He Lifeng.

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