The trade rivalry between the United States and China is intensifying as Washington threatens to impose new tariffs on Chinese goods, while Beijing has announced tighter controls on the export of rare earth materials. These developments follow a tense meeting between President Xi Jinping and President Donald Trump at the 2019 Group of 2s Summit in Osaka, Japan, which highlighted the growing economic competition between the two global powers.
Analysts suggest that Xi Jinping’s decision to implement new rare earth controls may be driven by his desire to project strength before a crucial meeting of Communist Party leaders. This move is seen as part of a broader strategy to assert China’s economic influence and reduce its reliance on foreign technology. The rare earth controls are also a response to recent U.S. efforts to limit China’s access to critical minerals used in high-tech industries.
Meanwhile, the U.S. government has signaled its intent to continue imposing tariffs on Chinese imports, citing concerns over unfair trade practices and intellectual property theft. These measures are expected to further strain the already delicate economic relationship between the two countries. As the trade dispute continues to escalate, both nations face the risk of a prolonged economic conflict with significant global implications.