Trump’s Asia tour has resulted in several agreements on trade and rare earths, which analysts say is part of a broader strategy to gain leverage against China as Trump prepares for a highly anticipated meeting this week with its leader, Xi Jinping.
The president has signed agreements on trade, rare earths or both with Thailand, Cambodia, Malaysia and, as of this morning, Japan. It has become an especially urgent issue for the U.S. amid concerns that China, which has a near-monopoly on their mining and processing, could disrupt the global supply through export controls.
“These quick deals are about trying to gain leverage before sitting down with Xi,” said Jayant Menon, a visiting senior fellow at the ISEAS–Yusof Ishak Institute, a Singapore-based think tank.
But Menon said the deals, despite Trump’s claims, “are not a great deal for anyone,” and have been “scribbled over just a few days.” Countries are agreeing to the deals even though they’re unfavorable because “they know they still need the U.S. for non-economic needs,” he said.
Part of Trump’s plan is to reduce U.S. reliance on China for rare earth materials, which are key components for producing electronic devices and other advanced technologies. But that could take years, as China has perfected both the sourcing and the processing over decades.
“The question is whether China will buy the bluff,” Menon said.
AloJapan.com