President Donald Trump is heading to Asia with a clear and strategic objective: to sign a series of economic and critical minerals deals with key trading partners in a direct bid to ramp up pressure on China ahead of a crucial meeting with President Xi Jinping.
According to a report in Bloomberg that cited senior US officials, the administration’s central goal is to create more reliable supply chains for critical industries, a move designed to counter Beijing’s dominance in the sector and bolster global growth.
The trip, which includes stops in Malaysia, Japan, and South Korea, will culminate in a high-stakes, face-to-face meeting between the leaders of the world’s two largest economies.
Securing alternative supply chains for critical minerals
The issue of rare earth minerals, which are vital for the technology, defense, and energy sectors, is a central focus of the president’s trip.
The push to secure alternate sources for these materials has taken on a new urgency after China recently unveiled tighter export controls in the latest round of a tit-for-tat trade war with Washington.
China’s near-monopolistic grip on the supply chain for these metals has long been a key point of leverage for Xi in the ongoing trade dispute.
The trip follows a template that has already proven successful. Earlier this week, President Trump signed a landmark pact with Australian Prime Minister Anthony Albanese to boost US access to critical minerals, a pipeline the Australian leader valued at $8.5 billion.
Malaysia signals it is open to a potential minerals deal
One of the first potential agreements on this trip could be with Malaysia.
When asked by Bloomberg Television if Malaysia would be inking a deal when Trump visits, the country’s Investment, Trade and Industry Minister, Zafrul Aziz, said, “It is a possibility.”
The talks are part of a broader diplomatic effort that will see the president hold bilateral meetings with Japanese Prime Minister Sanae Takaichi and South Korean President Lee Jae Myung, with Seoul in particular looking to finalise its own stalled trade and investment pact with Washington.
A high-stakes meeting with Xi looms
These efforts to build alternative supply chains are part of a broader strategy to strengthen Washington’s negotiating position ahead of the pivotal meeting with President Xi.
The trade truce between the two nations is set to expire in November, and tensions are once again running high.
President Trump has threatened to impose an additional 100% tariff on Chinese products by November 1 if Beijing does not pull back its new export restrictions.
On Friday, his administration opened another front, launching an investigation into whether China had complied with the terms of a limited trade pact from the president’s first term, a move that could open the door to even more tariffs.
In addition to the trade disputes, the president is also seeking to convince his Chinese counterpart to resume purchases of American soybeans and to crack down on the trafficking of fentanyl.
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