Trump Snubs Xi Amid China’s Rare Earth Power Play – Jack Lifton’s Analysis

Today, we have Jack Lifton, Co-Chair of the Critical Minerals Institute (CMI) and widely regarded as the world’s #1 expert on critical minerals, to discuss a startling development in the U.S.–China trade standoff. President Donald Trump has abruptly decided not to attend an upcoming meeting with China’s President Xi Jinping in South Korea. Lifton believes the cancellation is rooted in optics and strategic calculation — Trump is avoiding a scenario that could portray the U.S. as being on the back foot. In the rare earth elements showdown that underpins this trade war, China still holds all the cards.

China Tightens Its Grip on Rare Earths

Beijing has moved decisively to strengthen its leverage ahead of any high-level talks. In early October, China announced new export controls on rare earth elements, dramatically expanding an existing tech export ban. Five additional rare earth metals were added to China’s export restriction list – holmium, erbium, thulium, europium, and ytterbium – bringing the total controlled rare elements to 12 out of the 17 rare earths. These materials (along with related processing technology and equipment) can no longer be freely exported from China without special licenses. The timing is no coincidence: the rules were unveiled just weeks before a planned Trump–Xi summit, signaling a strategic move by Beijing to gain bargaining power.

Why do these obscure-sounding elements matter? Each of the newly restricted rare earths has niche but critical high-tech uses. They are precisely the kinds of inputs that advanced industries – and militaries – rely on. In brief, the five metals and their key applications include:

Holmium (Ho): Used in extremely strong magnets and certain semiconductor and nuclear technologies. Holmium can boost the strength of permanent magnets, which are vital in everything from electric motors to weapon systems.

Erbium (Er): Crucial for fiber-optic telecommunication networks and infrared laser devices. Erbium-doped optical fibers enable the internet’s long-haul data transmission, and its infrared applications have both commercial and military value (night vision, laser rangefinders, etc.).

Thulium (Tm): Employed in portable X-ray machines and laser equipment. Thulium’s fluorescence under ultraviolet light also makes it useful in anti-counterfeiting technology. It’s one of the rarest rare earths, hence seldom discussed – even Lifton quipped he’d have to double-check its uses.

Europium (Eu): A phosphor element used in red and blue phosphorescent compounds for LED lighting and display screens, as well as in control rods for nuclear reactors. Europium’s role in screens and illumination has expanded with modern electronics, and it has potential military applications (such as in specialty lasers or targeting systems).

Ytterbium (Yb): Used as a radiation source in X-ray devices and in nuclear medicine, and finding new applications in quantum computing and precision alloys. Ytterbium can also act as a catalyst in certain chemical processes. While less famous, its importance may grow with cutting-edge tech development.

China’s official justification for these export curbs is national security. Rare earth materials are considered “dual-use” – integral to civilian high-tech products but also crucial for advanced military hardware. A Chinese Ministry of Commerce spokesperson noted that certain foreign entities have been obtaining Chinese rare earths and related know-how, then funneling them into military applications, which Beijing says threatens its national security. In other words, China is effectively responding in kind to Western export bans. (Recall that the United States and its allies recently barred China from buying cutting-edge semiconductor chips and equipment, precisely to prevent Beijing from advancing its AI and weapons programs. What’s “good for the goose is good for the gander,” as Lifton puts it.) By tightening the spigot on rare earth exports now, President Xi is sending a pointed message: China will not continue enabling Western industries – or militaries – at its own expense.

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