Trump-Xi Summit Focuses on Critical Minerals and AI Chip Access
In Focus
- Trump and Xi hold high-stakes tech and trade talks in Beijing
- China controls 90% of rare earths, giving Beijing strong leverage
- Washington clears Nvidia H200 chip sales to Chinese firms
- US launches $12B minerals initiative amid years-long supply gap
The Trump Xi Summit in Beijing hinges on two critical technology flashpoints: China’s dominance over critical minerals and market access for American AI chip manufacturers. President Trump and President Xi Jinping began two days of high-stakes negotiations, with Nvidia CEO Jensen Huang, Apple’s Tim Cook, and Tesla’s Elon Musk accompanying Trump, underscoring how deeply technology has penetrated the US China trade talks agenda.
China’s Critical Minerals Give Beijing the Upper Hand
China controls approximately 90% of global rare earth refining and 91% of magnet production, according to the International Energy Agency, giving Beijing unprecedented leverage in US China trade talks. These materials are essential for semiconductors, electric vehicles, and military equipment.
Kyle Chan of the Brookings Institution told CNBC, “China’s export controls on rare earths and magnets are a powerful source of leverage for Beijing.” The critical minerals supply chain issue intensified after Beijing imposed export restrictions following Trump’s 2025 tariff escalation, before the October trade truce brought temporary relief.
Gracelin Baskaran of CSIS emphasized the timeline challenge, noting the US must tread carefully to avoid supply disruptions while transforming rare earth investments into actual supply.
Building Alternative Supply Chains Takes Years
The Trump administration launched a $12 billion initiative in February 2026 to stockpile critical materials. In April 2026, USA Rare Earth announced plans to acquire Brazil’s Serra Verde Group, one of few mines outside China with heavy rare earth supply.
Despite these moves, the critical minerals supply chain gap remains wide. Heidi Crebo-Rediker of the Council on Foreign Relations stated, “The US and its allies cannot out-mine, out-process or outspend China quickly enough to rebuild resilience in the near term.” Key elements of the October 2025 trade truce begin expiring as early as November 2026, adding urgency to US China trade talks.
Nvidia Chips and AI Access Take Center Stage
Trump stated opening China for American businesses would be his first request at the Trump Xi meeting 2026. Shortly after, Reuters reported Washington cleared sales of Nvidia’s H200 AI chips to several major Chinese tech firms. However, Crebo-Rediker warned the arrangement could trigger fierce backlash from China hawks in Congress, calling it politically explosive, complicating broader US China tech relations.
What Comes Next
The Trump Xi Summit represents a critical inflection point in managing technological rivalry. The best-case outcome is extending the October 2025 trade truce beyond November 2026, providing crucial critical minerals supply chain stability. The Trump Xi meeting 2026 outcomes will shape how American tech companies navigate US China tech relations for years to come.
