In Beijing’s version of the trade war, the United States is the bully and China is a victim, a rising power trying to protect the global economy while Washington unfairly hurls tariffs and technology bans its way.
That narrative is getting harder to square with the image of China that has emerged in recent days: that of an industrial juggernaut ready to use its chokehold over minerals crucial to modern manufacturing against any country, or company, that stands in its way.
China mines and processes much of the world’s rare earths, which are needed for everything from computer chips to electric vehicles and fighter jets. In retaliation against President Trump’s tariffs and tech restrictions, Beijing has introduced a system that would control the trade of a huge swath of tech products that contain trace amounts of Chinese rare earths.
The move gives Beijing powerful leverage going into a meeting next week between Mr. Trump and China’s leader, Xi Jinping, a chance to remind Washington that China’s grip on the minerals can shape the terms of any trade truce.
Still, the economic muscle-flexing could backfire for Beijing, which has spent years condemning the American export controls that it now says it is copying. By showing its willingness to weaponize rare earths — limiting access to only those countries that it favors — China risks looking like the irresponsible hegemon that it often accuses the United States of being.
“China’s walking a fine line here between strengthening its position in U.S.-China trade negotiations and scaring the rest of the world about its export control intentions,” said Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis.
China has pressed Washington to drop its restrictions on exports of advanced semiconductor chips, lower tariffs and remove obstacles to Chinese investment in the United States. In response, Mr. Trump has threatened an additional 100 percent tariff on Chinese products and export restrictions on U.S. software.
The two sides, analysts believe, could try to stabilize the relationship and agree to suspend their most punitive measures — meaning a pause on U.S. tariffs and expanded tech restrictions, and a delay in the Chinese controls on rare earths.
