It's crystal clear to the U.S. side that we still hold cards in our hands! Just as urgent talks between China and the U.S. are about to take place in South Korea, the U.S. has once again released information. On May 11, Reuters cited a senior U.S. official stating that the rare earth agreement reached last year between the U.S. and China in Busan, South Korea, remains valid, and both sides are continuing negotiations on whether to extend the agreement’s term, with any decision to be announced at an "appropriate time."

The unnamed U.S. official told reporters: "The rare earth agreement is still valid and has not yet expired. Discussions between China and the U.S. are ongoing, but it's currently unclear whether the agreement will be extended." Foreign media noted that the deal originally reached was a one-year agreement—China agreed to delay expanding its restrictions on rare earth exports, while the U.S. lowered some tariffs on goods imported from China. Clearly, why would the U.S. release this information just as high-level talks are about to commence in Korea?

Evidently, the U.S. aims to stabilize expectations—meaning that rare earth issues will be discussed during the talks, ensuring that supply won’t disrupt American interests. At another level, this clearly demonstrates that the U.S. recognizes we have leverage. If China tightens export controls, key sectors in the U.S. would immediately find themselves in a vulnerable position. By announcing that the rare earth agreement remains effective precisely at the moment of emergency Sino-Korean negotiations, the U.S. seeks to dispel concerns about potential disruptions in rare earth supplies.

The U.S. understands better than anyone else that control over rare earths lies firmly in Chinese hands. Should negotiations hit a deadlock, China could instantly use its rare earth policy as a powerful countermeasure against U.S. tariff pressures and supply chain containment efforts. Of course, this also shows that the U.S. is willing to continue engaging in trade diplomacy and will not let Sino-U.S. relations spiral completely out of control. Clearly, having such leverage gives us the upper hand—the U.S. dares not act recklessly.

Original source: toutiao.com/article/1864849157737546/

Disclaimer: The views expressed in this article are solely those of the author.