Trump, Takaichi Sign Rare Earth Deal Ahead of APEC Summit
Trump and Takaichi signed a rare earth and critical minerals agreement aimed at strengthening supply chains and reducing dependence on China ahead of the APEC summit.
The United States and Japan have signed a new agreement aimed at securing supplies of critical minerals essential for electronics and clean energy technologies, Reuters reported on Tuesday.
US President Donald Trump and Japanese Prime Minister Sanae Takaichi formalised the deal during talks focused on strengthening supply chain resilience and limiting reliance on China, which processes more than 90 percent of the world’s rare earth elements.
Although neither leader directly named China in their public remarks, the strategic intent was clear. Both governments are seeking to diversify sourcing of rare earths and other high-value inputs used in semiconductors, batteries and defence industries.
The White House stated that Washington and Tokyo will coordinate investment and economic policies to expand transparent and fair markets for critical minerals. Japan has also pledged to invest 550 billion dollars in the United States economy, a move intended to boost industrial cooperation.
The pact comes ahead of Trump’s planned meeting with Chinese President Xi Jinping on the sidelines of the APEC summit in South Korea, where supply chain security is expected to feature prominently in discussions.
Analysts tell Afghanistan International that the agreement reflects a wider geopolitical effort by allies to counter China’s dominance in strategic sectors. The growing competition over rare earth minerals has become a crucial front in the technological rivalry between global powers.
Washington and Tokyo hope the new framework will accelerate development of alternative supply routes and strengthen economic security, although experts warn that reducing China’s market control will require sustained long-term investment.
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