WASHINGTON, 24 Oct. - (ANA) - US President Donald Trump and his Chinese counterpart Xi Jinping are due to meet in South Korea next week. 

 

However, it is uncertain whether they actually will. Such is the shocking state of the world’s most important relationship. 

 

For weeks, America and China have been lashing out at each other. America has tightened tech-export restrictions and threatened higher tariffs; China has wielded sanctions and restrictions on rare earths. 

 

The two sides communicate poorly. In the White House there is a belief that America has the upper hand in this test of nerves and pain-tolerance. Scott Bessent, the treasury secretary, says China is “weak”. But the reality is different.

 

The US is reeling at the realisation that China could seriously hurt it by weaponising its dominance of rare earths, crucial ingredients in everything from cars to fighter jets.

 

Its new rules not only restrict the export of rare earths, but also require foreign firms to seek a licence to export rare earths obtained using Chinese equipment, or magnets containing more than a trace of Chinese rare earths.    - (ANA) - 

 

AB/ANA/24 October 2025 - - -