US President Donald Trump has blasted China, saying Beijing had “totally violated its agreement” with the US on rare earth minerals. The move comes after China failed to follow through on a promise to allow the free flow of these essential materials.
The White House plans to resolve this issue and potentially reduce mutual tariffs, which would benefit the stock market and business managers. However, in the long term, Trump’s administration must commit to eliminating US dependence on China for critical goods, such as rare earths and pharmaceuticals.
Rare earths are crucial for producing camera lenses, catalytic converters, and other products. China dominates global production, with 60% of mine output and 90% of processed materials. The US economy is vulnerable to Chinese control, which can be exploited by Beijing.
To address this issue, Trump proposes a joint venture with Ukraine, which would help the US reduce its reliance on China for rare earths. Ukraine has 22 out of 34 minerals classified as “critical” by the EU.
The US also faces a significant challenge in accessing essential pharmaceuticals from China. In 2020, Chinese companies supplied over 90% of US antibiotics and other medications. The COVID-19 pandemic highlighted this vulnerability, when Beijing witheld vital drugs and personal protective equipment from Americans.
To break this dependence, Trump advocates for reducing taxes, adopting new technology like AI, and deregulation to make domestic manufacturing profitable again. These policies are key components of his agenda to make the US independent once more.
Source: https://www.foxnews.com/opinion/liz-peek-trump-must-stay-strong-us-reliance-chinese-minerals-drugs-puts-americans-risk