President Donald Trump cast doubt on a planned meeting with Chinese President Xi Jinping amidst escalating trade tensions, particularly concerning critical minerals, as Washington moves to bolster alliances against Beijing’s economic influence.
Speaking on Tuesday during a lunch with Republican lawmakers in the White House Rose Garden, President Trump stated that the anticipated encounter “perhaps it won’t happen.” He noted the meeting could be called off if either party found it “too unpleasant.”
The potential meeting, scheduled to occur within two weeks at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, faces increasing friction. A central point of contention is the global struggle for control over critical minerals and rare earths, which are vital for technology industries.
Just a day prior to his remarks, President Trump met with Australian Prime Minister Anthony Albanese at the White House. The two leaders signed an agreement to cooperate on developing critical mineral supply chains, a move widely seen as a direct challenge to China’s dominant position in the sector.
China, the world’s largest producer of these materials, responded through its embassy in Washington. Spokesperson Liu Pengyu told FOX Business that global supply chains are market-driven and urged countries to ensure stable and normal trade.
Global markets are closely watching the developments, with the cryptocurrency sector showing particular volatility. When President Trump previously signaled renewed tariffs against China, Bitcoin and other major cryptocurrencies experienced significant price drops.
Bitcoin and Ethereum were recently trading at approximately $109,298 and $3,915 per unit, respectively.
The increased tension comes after Beijing imposed new restrictions on rare earth exports, prompting Washington to threaten additional tariffs on Chinese goods. Treasury Secretary Scott Bessent is slated to meet with Chinese counterparts this weekend to try and de-escalate the situation.
President Trump maintained that he has a good relationship with President Xi and expressed confidence in reaching a “good deal” with China, emphasizing that any agreement “must be fair.” He affirmed his administration’s commitment to push for changes in the trade relationship, regardless of whether the meeting proceeds, adding, “It’s just business.”