US Lawmaker: China’s Rare-Earths Issue Still Unresolved Despite Talks in Beijing

A high-level US congressional delegation visiting Beijing underscored that the dispute over China’s dominance of rare-earth supplies remains unresolved. Representative Adam Smith, the lead Democrat on the House Armed Services Committee, said in a press briefing that the rare-earth question has not been settled and “still needs to be worked on,” without detailing the sticking points. The briefing came amid a broader, ongoing bid to steady deteriorating bilateral ties as the two countries approach high-stakes negotiations on trade, technology, and security. The visit marks the first official trip by a US House delegation to China since 2019, signaling Washington’s desire to reset a relationship that has grown increasingly tenuous even as both sides seek broader cooperation on economic and strategic interests. While Smith emphasized continuing challenges on rare earths, the delegation also touched on a range of other fronts, from technology governance and privacy concerns to potential diplomatic engagements at higher levels of government.

Unresolved rare earths quandary and its strategic weight

China’s dominance of the rare earths supply chain remains a central irritant in US-China relations, reflecting broader strategic leverage that Beijing has long wielded over critical minerals essential to manufacturing modern technologies. Rare earth oxides and the magnets derived from them are indispensable for a wide array of high-tech applications, including electric vehicles, wind turbines, precision-guided weapons, and various advanced industrial and consumer technologies. Analysts and policymakers alike view these materials as strategic assets due to their scarcity outside China, the complexity of the processing chain, and the concentration of refining capacity that concentrates leverage in Beijing. This dynamic has intensified calls in Washington to diversify supply chains, reduce dependency on a single supplier, and ensure national security and economic continuity in the event of geopolitical tension or export controls.

Beijing’s approach to rare earths has historically blended economic policy with strategic signaling. The two governments reached a framework agreement in June—an arrangement that includes a Chinese commitment to review applications for shipping rare earth magnets—but the limited disclosure surrounding the deal has left many questions unanswered. In the immediate aftermath, Washington signaled that it would monitor developments closely while continuing to press for greater transparency and competitive access. The absence of detailed provisions has fed concern among US manufacturers and allied companies that rely on stable and predictable access to rare earth materials, particularly as demand surges for markets such as electric vehicles and defense technologies. The lack of clarity around processing capacity, export controls, and the timing of any potential restrictions increases market nerves and invites speculation about supply disruptions at a moment of rapid technological transition.

From a commercial standpoint, the situation has produced mixed signals. The US Trade Representative, Jamieson Greer, twice publicly noted that US supplies had “bounced back up significantly” after earlier strains, suggesting that the immediate risk of a total disruption in supply may have eased somewhat. Yet European manufacturers have reported shortages that threaten to halt some production lines, underscoring the global nature of rare earth dependencies and the vulnerability of international manufacturing ecosystems to policy shifts in Beijing. The tension between maintaining a robust domestic supply chain and preserving open, predictable access to international markets creates a delicate balancing act for US policy makers, industry leaders, and allied governments.

Within the Washington-Beijing dialogue, the rare earth issue is also intertwined with broader questions about technology governance, industrial policy, and the role of public-private partnerships in securing critical materials. The delegation’s encounter with Chinese officials did not yield a crisp resolution but rather reinforced that the problem remains a point of friction that will require ongoing negotiation and sustained attention. The absence of a definitive settlement on rare earths does not only affect the economics of minerals; it also carries implications for national security, military readiness, and the ability of the United States to maintain technological parity with competitors who enjoy more favorable access to resources and processing capacity.

Industry observers note that any durable solution will likely hinge on a mix of policy reforms, investment in domestic processing capabilities, and strategic diversification that reduces dependence on a single region. While Beijing’s statements and actions in the near term may aim to modulate expectations, the underlying reality remains that rare earths occupy a central strategic position in the broader US-China competition. The US delegation’s framing of the issue as still “to be worked on” signals an ongoing negotiation trajectory rather than a brief pause, with potential implications for future bilateral rounds, market expectations, and the political economy of global supply chains.

Detailed discussions during the visit also touched on the timing and mechanics of rare earth magnet shipments, the transparency of licensing and permit processes, and the potential for cooperative measures that could stabilize markets while addressing national security concerns. As policymakers weigh the costs and benefits of various policy options—from stockpiling to encouraging alternative materials and recycling—rare earths will likely remain a focal point in ongoing US strategy toward China. The dialogue signals a recognition that even with progress in other areas, the rare earths question persists as a serious driver of bilateral tension and a defining factor shaping the trajectory of future economic and security ties.

Tech governance, privacy concerns, and the TikTok dilemma

Beyond raw materials, the delegation gave attention to technology governance and the sensitive issue of content platform oversight. A prominent topic centered on ByteDance Ltd and the role of its flagship app in the United States, with questions about whether ByteDance’s involvement in maintaining the app’s underlying algorithm has been fully resolved. The inquiry reflects broader US anxieties about privacy, data security, and the potential for foreign influence through social media platforms. While the specifics of any ongoing negotiations remain undisclosed, the discussions underscored that the technology governance dimension of the US-China relationship remains unsettled and consequential for both sides’ digital markets and data policies.

One of the most visible lines of inquiry concerned the potential spin-off of TikTok’s US operations to a consortium that would include Oracle Corp. The arrangement under discussion envisions TikTok becoming majority-owned and controlled by American interests, addressing concerns over national security and user privacy while preserving access to a large user base in the United States. White House staff, including a spokesperson who emphasized that many finer details remain to be made public, indicated that the administration continues to pursue a pathway that could satisfy security concerns while preserving business and consumer interests. The evolving nature of this arrangement illustrates how deeply privacy and security concerns intersect with commercial considerations in the US-China technology landscape.

The discussions also reflect broader trends in US policy toward Chinese technology firms and the global push for supply chain resilience in the digital era. The meeting context highlighted a desire to balance competitive pressures with the need to protect American data and infrastructure from perceived vulnerabilities. The delegation’s stance—while recognizing the potential benefits of greater domestic control over critical tech assets—also acknowledged the complexity of renegotiating cross-border platforms that have become deeply integrated into global digital ecosystems. As negotiations continue, the parties will need to address issues ranging from algorithm transparency and data localization to the governance of cross-border data flows and the privacy protections afforded to users on both sides of the Pacific.

In parallel to the TikTok discussions, the delegation signaled a continuing interest in how geopolitics shapes tech markets and the operational realities faced by US firms seeking access to the Chinese market. The broader question concerns how both countries can establish guardrails that encourage innovation and protect sensitive information, while avoiding a protracted decoupling that could hamper global technology ecosystems. The discussion also touched on the potential for further alignment or disagreement on standards, compliance regimes, and enforcement practices that affect foreign technology companies operating in China and Chinese firms exporting to the United States.

Economic signals, security posture, and diplomatic signaling

Within the economic and security conversations, the delegations highlighted several high-stakes issues that illustrate the complexity of the current US-China relationship. A centerpiece of the broader economic dialogue is a reportedly large Boeing Co. order that has been described as a potential cornerstone of a comprehensive trade agreement. The sense among US officials is that a substantial Boeing purchase, if realized, would serve as a tangible indicator of improved bilateral commerce and a thaw in tensions that have long shadowed aviation and manufacturing sectors. The timing and scope of such an order, however, remain contingent on broader tensions and the progression of ongoing negotiations. In other words, aerospace procurement could become a barometer for the pace and scope of any broader trade rapprochement.

On the security front, Representative Smith emphasized the need for ongoing dialogue about Beijing’s rapidly expanding nuclear arsenal. He argued that with nuclear stockpiles moving into hundreds and approaching the thousand-mark, it becomes increasingly important to establish channels for direct, transparent, and reliable military-to-military dialogue. The aim is to reduce the risk of miscalculation and to foster mutual understanding that can help manage and de-escalate potential crises. This line of reasoning underscores a long-standing belief among many strategic thinkers that crisis stability depends not just on formal treaties but on sustained communication and respect for red lines, particularly as capabilities grow.

The delegation also pressed for fair access to China’s market for US firms, especially in sectors where American companies claim to face unduly restrictive conditions or opaque regulatory practices. The discussions on fentanyl, a substance linked to cross-border trafficking, reflected broader concerns about illegal drug flows and the need for aligned controls to prevent illicit trade while maintaining legitimate commerce. Taken together, these elements illustrate how the contemporary US-China relationship blends trade, technology, security, and rule-of-law considerations into a single, multifaceted bilateral agenda.

During the visit, the delegation held talks with major Chinese officials, including National People’s Congress Chairman Zhao Leji and Foreign Minister Wang Yi. Wang Yi, in his opening remarks, praised the exchanges between the two heads of state for helping to steady the relationship and urged both sides to uphold the gains achieved in recent periods. He stressed the importance of preserving the hard-won stability and cautioned against backsliding when tensions temporarily ease. The meetings reflected a shared sense that while the relationship has stabilized somewhat, it must be actively nurtured to prevent drift toward renewed confrontation. The tone from Chinese officials suggested a willingness to continue dialogue, even as substantive disagreements persist on key issues such as rare earths, data governance, and market access.

The broader diplomatic context of the visit also included recognizing that the bilateral relationship remains dynamic and prone to sudden shifts depending on domestic political dynamics, global economic conditions, and regional security developments. The delegation’s presence, complemented by the US Ambassador to China, David Perdue, was framed as an attempt to build goodwill and lay groundwork for future engagement at higher levels, including the prospect of a potential meeting between the presidents of the United States and China in the coming months. While much of the public messaging emphasized measured optimism and a commitment to stabilizing ties, the underlying message to both markets and international partners was that the path forward would require patience, pragmatic negotiation, and continuous channels of communication. The discussions also underscored the importance of tying commercial breakthroughs, such as a major aircraft order, to a broader pattern of positive, predictable partnership that can survive political headwinds.

The visit, and the accompanying public remarks, signaled an intent to blend cooperation where possible with a clear-eyed assessment of areas where competition and strategic differences persist. The evolving understanding between Washington and Beijing about how to manage these contests—rare earths, technology governance, market access, and security—will shape the trajectory of global economic relations and the balance of power in the Indo-Pacific region. As both sides weigh concessions, safeguards, and shared interests, the outcome of such engagements will influence investor sentiment, supply chain strategies, and the risk calculus for companies operating across the two largest economies.

Conclusion

The US congressional delegation’s Beijing visit reaffirmed that the core irritants in US-China relations—especially the rare earths question—remain unresolved, even as dialogue continues and broader ties show signs of stabilization. The discussions highlighted a spectrum of pressing issues, from the strategic importance of China’s control over critical minerals to the governance of digital platforms and the security dimensions of a rapidly expanding nuclear arsenal. The talks also reflected a shared interest in sustaining partnerships in trade and industry, as evidenced by discussions around a possible large Boeing order, contingent on easing tensions and a broader framework for cooperation. The future of the relationship will depend on sustained, transparent negotiation, with a willingness to address difficult questions about supply chains, data security, and strategic stability. The presence of senior Chinese officials and the US ambassador on a visit aimed at building goodwill indicates that both sides still value open channels of communication, even as substantive disagreements persist. The path ahead will require careful management of expectations, explicit commitments on critical issues, and ongoing dialogue to prevent misperceptions from spiraling into renewed confrontation.