Big Take Asia Xi’s Top Bargaining Chip Is a Trade War Game Changer
21 snips
Oct 21, 2025 
Daniel Ten Kate, Bloomberg's executive editor for Asia, talks about China’s powerful position in the rare earths market and how it influences U.S.-China relations. He explains how rare earths are weaponized in trade negotiations and their pivotal role in the upcoming Trump-Xi meeting. Ten Kate discusses China’s control over the supply chain and export rules, the U.S.’s attempts to create alternative sources, and the political challenges to forming a lasting trade deal. The conversation reveals the complexities of global trade dynamics.
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Rare-Earths Shift The Bargaining Balance
- China's rare-earth controls give it real leverage in trade negotiations and can force U.S. concessions.
- Daniel Ten Kate says Trump backed down, making Xi's move a game changer for bargaining power.
Processing, Not Just Mines, Matters Most
- China controls about 70% of supply and nearly all processing technology for rare earths.
- Daniel Ten Kate notes the U.S. lost its edge in the 1980s–90s, leaving few non-Chinese supply chains.
Rules Reach Beyond Raw Minerals
- New Chinese rules can require licenses even when a product contains trace rare-earth content.
- Daniel Ten Kate warns this extends controls to finished products and export permissions, raising enforcement questions.