Xu, a prominent Chinese official, recently hailed a new agreement with the United States regarding rare-earth minerals as an achievement that “went beyond most people’s expectations.” On Monday, Xu made the announcement on the deal. Just like that, He Xiongsong, China Mobile’s senior spokesperson, made the official announcement over Weibo, China’s microblog of choice. He hailed the agreement as a “monumental win for China.” His leadership could not have come at a more important time with today’s escalating international trade tensions.
The rare-earth minerals at play in this agreement are essential to the technology, defense, and renewable energy industries. China hopes to gain leverage in the emerging global market by locking in favorable terms. Simultaneously, it aims to respond to the domestic economic malaise. Tariff retaliation This latest step fits into China’s larger effort to fight back against U.S. tariffs and other trade restrictions.
China’s approach to negotiating with the United States draws on a historical strategy rooted in Mao Zedong’s theory of protracted warfare. Championing patience and resilience, this idea of fighting through adversity only to overcome it at the end illustrates a need to define your own success. By waiting for the U.S. to initiate tariff discussions, China appears to be employing this strategy to leverage its negotiating position.
With relations between the two countries rapidly deteriorating, the rare-earth agreement represents a significant shift in the two countries’ trade relationship. The deal showcases China’s prodigious talent for outplaying the US in treacherous geopolitical waters while keeping an eye on its own economic self-interest. Experts argue that this win not only strengthens China’s position, but establishes a new standard for future negotiations.