Long-awaited Trump-Xi call isn’t enough to resolve looming critical mineral shortage this summer

Trump-Xi Call Fails to Resolve Looming Critical Mineral Shortage

A recent phone call between U.S. President Donald Trump and Chinese President Xi Jinping aimed to ease trade tensions and address the ongoing critical mineral shortage. While both leaders agreed to resume trade talks, the conversation did not yield concrete solutions to the pressing issue of China’s export restrictions on rare earth elements, which are vital for various industries including electric vehicles, defense systems, and electronics.

China, which controls approximately 90% of the global rare earth production, had previously suspended exports of these materials, causing significant disruptions in supply chains. The U.S. accuses China of leveraging its dominance in critical minerals to gain an upper hand in trade negotiations, while China criticizes U.S. restrictions on advanced technology exports and student visas.

Despite the positive tone of the call, analysts remain skeptical about the likelihood of a swift resolution. The lack of specific commitments or timelines raises concerns about potential supply shortages during the summer months, which could impact various sectors reliant on these essential materials.