Trump Softens Stance on China Amid Trade Tensions

US President Donald Trump adopted a gentler approach towards China on Sunday, calling President Xi Jinping “highly respected” and expressing a desire for the United States to “help” rather than harm China. This shift in tone comes despite ongoing tensions over rare earth elements and potential tariffs. Trump stated on his Truth Social platform, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! President DJT.”

This change follows Trump’s earlier accusations that China had taken a “sinister and hostile” step by imposing strict export controls on rare earth elements, which escalated tensions between the two nations. He warned that China was trying to “hold the world captive” and hinted at a significant increase in tariffs on Chinese goods.

In response to Trump’s threat of a 100% tariff hike, China’s commerce ministry urged the US to “promptly correct its wrong practices” and engage in “equal-footed consultation.” The ministry stated, “We do not want a tariff war, but we are not afraid of one,” warning that if the US continues on this path, China would take “resolute measures” to protect its interests. They clarified that the export controls were not outright bans, as licenses would be available for civilian and humanitarian uses, including medical assistance and disaster relief.

China plays a crucial role in the global supply chain, accounting for nearly 70% of rare earth mining and about 90% of processing. These minerals are essential for manufacturing various technologies, including jet engines, smartphones, and electric vehicles.

The renewed tensions are rooted in China’s restrictions on rare earth exports, citing national security and concerns over foreign military applications. US Vice President JD Vance defended Trump’s tariff threats, describing China’s control over critical supplies as a “national emergency.” He emphasized that Trump’s strategy aims to enhance US self-sufficiency, stating, “It’s going to be a delicate dance.” Vance also indicated that Trump is open to negotiation, saying, “If they’re willing to be reasonable, then Donald Trump is always willing to be a reasonable negotiator.”