Rare earths friction threatens to stall trade truce extension ahead of Xi-Trump summit

US Trade Representative blames China for creating ‘uncertainty’ but observers point to benefits for both sides in delaying agreement3-MIN READ3-MIN1ListenPublished: 10:59am, 22 Sep 2026Updated: 11:11am, 22 Sep 2026The US and China continue to wrangle over extending the 2025 Busan trade agreement just hours before Chinese President Xi Jinping arrives in Washington for a state visit, even as they report progress on implementing a narrow tariff-reduced trade mechanism.US Trade Representative Jamieson Greer on Monday blamed China for creating “uncertainty” over the pact’s extension, saying Beijing was still holding out on supplying enough strategic mineral exports to the United States.“They have limited rare earth exports. They’ve controlled them,” Greer said in an interview with Bloomberg News.“President Xi and President Trump have a good relationship, but we need these extensions or other things to go incrementally to make sure that there’s compliance.”China’s shipments of rare earth magnets to the US fell 13 per cent year on year to 512 tonnes in August. This was despite Beijing resuming some export approvals following trade negotiations, and shipments recovering from their lows in 2025.Xi to get presidential airport welcome from Trump during US visit starting WednesdayGreer’s expressed frustration underscores a key dynamic of a bilateral relationship marked by complimentary language at the leader level papering over a significant number of irritants.His remarks – a day after the US and China agreed to launch a dialogue on artificial intelligence and kicked off a bilateral body to manage tariff-reduced trade – followed eight hours of negotiations in New York.