As the world eagerly awaits a Xi-Trump meeting that could signal a potential resolution to the long-lasting US-China tariff war, Beijing has introduced its strictest export controls yet on rare earth elements and the related production technology. The announcement took US President Donald Trump by surprise; he decided to raise tariffs on Chinese goods by a further 100 per cent.
From the start of this tariff war, Beijing has shown an ability for long-term strategy, positioning itself for a showdown. China’s “delay strategy” is a carefully calculated effort based on patience, economic leverage and a commitment to what it deems fair.
With the United States tightening control over artificial intelligence (AI) technology and semiconductor production, rare earth elements have become a crucial leverage point for Beijing. Moreover, China is also one of the largest markets for US agricultural exports.
More significantly, given that Trump aims for a decisive victory in the tariff war to secure the midterm elections next year, China’s strategy gives it an advantageous position in the final negotiations. This is a strategy Trump seems reluctant to acknowledge, ignoring China’s ability to protect its interests.
When the Trump administration started the tariff war, it tested not only China’s economy but also its strategic foresight. What followed was not a reckless escalation but a calibrated response: a combination of firm resistance, targeted countermeasures and deliberate delay, which showed China’s refusal to be bullied while keeping the door open. This approach is not about “winning” a trade war; it is about defending economic sovereignty and laying the foundation for long-term stability.
First, China responded to Trump’s aggression with unwavering resolve – and it worked. While other nations might have yielded to the tariff hikes, China stood firm: it matched US tariffs and made clear that no amount of pressure would force it to compromise on its core interests.
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