Rare Earths, Iran Conflict Give China Leverage Heading Into Trump Summit, Analysts Say

Analysts say China goes into this week’s summit with President Donald Trump holding measurable leverage, driven by dominance in rare-earths supply chains and potential diplomatic influence related to the Iran conflict.

Strategic Resources: China controls a large share of the global rare-earths processing capacity—minerals essential to electronics, electric vehicles, and many defense systems. Experts warn this gives Beijing a tangible economic lever it could use in negotiations.

Diplomatic Pressure: Commentators also note Beijing’s diplomatic position tied to developments around the Iran conflict could create additional bargaining chips, allowing China to press for concessions in broader U.S.-China talks.

“Xi Jinping has displayed confidence in going toe-to-toe,” The Washington Post wrote, and an analyst told The New York Times that China appears “locked and loaded” for another economic confrontation.

At the same time, some U.S. observers are concerned about Washington’s readiness. Ian Bremmer of Eurasia Group warned that Trump’s advisers are “concerned he’s heading into a summit he’s not adequately prepared for.”

U.S. Counterweights: Former U.S. diplomats emphasize that Washington still retains important advantages—notably in advanced semiconductor design and manufacturing technologies and in artificial intelligence. Those strengths give the United States tools to push back, including export controls, alliances with chip-producing partners, and continued investment in R&D.

Analysts say the summit could therefore be a high-stakes test of leverage: China’s resource and diplomatic clout versus U.S. technological superiority. Outcomes may hinge on preparation, allied coordination, and how both sides frame economic and security priorities.