Trump's Trade Crisis with China: Rare Elements and More

Trump's Demands from China: Rare Earth Elements and Soybeans

US President Donald Trump stated that the current biggest issues between the US and China are rare earth elements, fentanyl, and soybeans. In a statement made on his return from Florida to Washington on Sunday, Trump said, "We don't want the Chinese government to play games with us regarding rare earth elements."

Following China's announcement to establish global control over minerals, the US leader indicated that he would impose a 100% tariff on Chinese goods. Additionally, in his remarks regarding fentanyl, he emphasized the need to stop the use of this deadly opioid. This was related to criticisms that China has not been able to halt the export of the relevant drugs and precursor chemicals, thus contributing to the opioid crisis in the US.

Three Main Items on Trump's Demand List

Trump also requested that China resume its soybean purchases. While stating that these demands are extremely reasonable, US Treasury Secretary Scott Bessent announced that the US and China would hold talks in Malaysia this week. Bessent noted that this meeting came after his online discussion with Chinese Vice Premier He Lifeng last Friday.

China's Response and Expectations

Last week, Trump expressed his anger over China's control over rare earth elements and mentioned that he might cancel a planned face-to-face meeting with Chinese President Xi Jinping upon returning to the White House. Additionally, he announced that the 100% tariff on imported goods would come into effect on November 1. China, in parallel, tightened export controls on rare earth elements and other critical materials.

In an interview with Fox News on Sunday, China stated that the tariffs imposed on America are not sustainable. Trump, however, expressed hopes of meeting with Xi at the Asia-Pacific Economic Cooperation (APEC) Summit at the end of this month. "I don't think we'll have a problem with China, but we need to make a fair deal," he said.

Fentanyl and Soybeans: The Confusing Dynamics of Trade

Soybeans have gained significant leverage in the trade dispute. Last year, China imported approximately $12.6 billion worth of seeds, but this year it purchased none and turned to the South American market. Trump had decided to impose a 20% tariff on Chinese goods citing fentanyl trade back in February.

China argued that the responsibility for resolving the drug crisis lies with the US, stating that it has already tightened export controls on two chemical substances that could be used in fentanyl production.

In a regular press conference, when asked about the three issues raised by Trump, Foreign Ministry Spokesperson Guo Jiakun stated that the trade war would harm the interests of both sides and that negotiations should be conducted based on equality and mutual respect.