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Trump, Bessent can leverage TikTok negotiations to counter China's rare earth dominance
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and Commerce Minister Li Chenggang in Madrid last week. They announced a "framework agreement" over TikTok, the Chinese-owned app used by millions of Americans.But the story isnt only about TikTok. Its also about how America uses TikTok as a lever and why that lever is more necessary than ever.TikTok is an important issue in and of itself: control over data, algorithmic influence, foreign ownership all of which are critical for national security. In addition, however, TikTok is a tool the U.S. can and should use in ongoing trade engagement, as well as to counter Chinas growing leverage in rare earths, critical minerals and semiconductors.When I served in President Donald Trumps first administration ("Trump 45"), the core issues we confronted included a massive trade imbalance, intellectual property theft, cyber-theft and Chinas Belt and Road infrastructure expansion. These were predatory practices in trade, tech and finance. Today, in "Trump 47," the battlefront has broadened but one thing that hasnt changed is the psychological warfare the Chinese employ any time negotiations are underway.HOW US SHOULD RESPOND AFTER CHINA REJECTS TRUMP NUCLEAR TALKS, SHOWS OFF NEW WEAPONS AT PARADEI was at the center of one of the most dramatic examples of this during Trump 45After an exhausting month of prep work, I boarded my flight to Beijing in March 2018 with wary optimism. I had worked intensively leading up to this trip, drafting a comprehensive framework document outlining a new trade deal with China, a proposal that would overhaul virtually every aspect of the U.S.-China economic relationship.Wed senttheproposal toourChinesecounterpartsseveral days earlier, and now our high-level trade delegation was en route to Beijing to negotiate the largest change to trade relations in at least 10 years. The cast of characters illustrates just how significantthistradedealcouldbe.ItincludedSecretary StevenMnuchin(headofthedelegation),UnderSecretaryDavidMalpassand me(Treasury),SecretaryWilburRoss(Commerce),U.S.Trade RepresentativeRobertLighthizer andseveralofhisdeputies, NEC Director Larry Kudlow, Under Secretary Ted McKinney(Agriculture), and Peter Navarro (special assistant to the president and director of trade and manufacturing policy).TRUMP'S TARIFFS FORCE CHINA TO FEEL THE HEATWe arrived at the U.S. Embassy in Beijing with about an hourtoreviewourplansonemoretimebeforewehadtodepartfor Diaoyutai thestateguesthousewhereMaoandeveryleadersincehasentertainedforeigndignitaries.Buttherewasasurprise waitingforusatourembassy:abrand-newproposal,draftedby the Chinese,which they were putting forth at the eleventh hour, and which we had never seen. It was about 15 pages long and completely in Chinese!Iwasoneofthefewpeopleintheroomwhocouldreadit.Afteraquickscan,Itoldthegroup:"Thisiswhollyunacceptable. This document doesnt say anything theyre just messing with us." A heated debate ensued over how to respond, and how theChinesewerelikelytoreact.Buttherewasnotimetoreachaconsensus;itwastimetoleaveforDiaoyutai.Therewasamassexitfromthesecureroomwherewemetattheembassy,and,almostlikeawell-choreographedballetwith a hundred moving parts, we all shuffled to our designated cars.AsSecretaryMnuchinsteppedintothelimousinetotakeustothemeeting,Malpass insistedthatIridewiththesecretary and pushed me into the seat next to Mnuchin, saying, "We need toknowexactly whatthissays can youtranslateitontheway?"AswespedthroughthestreetsofBeijing,Isatinthebackseat,literally shvitzing as a technical term in Chinese got the better of me, and furiously translated as I read out loud, in English, whattheChinese haddroppedinourlaps.CHINA SHOWS MISSILES, TRUMP SHOWS MUSCLE: XI'S STRATEGY CAN'T MATCH USEven as we climbed the stairs into the building and entered the meeting room, none of us was quite sure how Mnuchin was goingtohandlethishotpotato.AfterVicePremier LiuHesflowing stream of diplomatic pleasantries welcoming us to China,thesecretarycalmlystatedinresponse,"Wereceivedyourdraft. Thanks for sending it over but were going to use ourdraft for today." It wasnt the preamble they expected. But it was entirely consistent with the new tone that President Trump had set fromthedayhetookoffice.Today, China has moved from using tariffs and IP theft to controlling choke points especially in rare earth elements, critical minerals, semiconductors and advanced manufacturing capacity. The numbers are clear indicators of Chinas leverage.China accounts for about 70 % of global rare earth mining and about 90 % of the worlds rare earth refining and separation capacity. In 2023, China controlled 61 % of global mining of rare earth magnet elements and 92 % of refining capacity for those magnets.CLICK HERE FOR MORE FOX NEWS OPINIONOn semiconductors: while U.S. companies remain strong in chip design and advanced R&D, Chinas share of the semiconductor industrys value-added has surged (from about 8 % in 2001 to over 30 % by 2016), and China is pushing aggressively to become self-sufficient in mature node production.These are not passive metrics. They are active levers China already uses in the trade negotiations through export restrictions, licensing controls or by threatening disruptions. For example, in April 2025 China clearly in response to President Trumps bold tariff moves added export licenses and restrictions for seven heavy rare earth elements, including dysprosium, terbium, samarium, plus rare earth magnetsmaterials critical to EV motors, wind turbines, electronics and defense systems.The challenges faced in Trumps first term have only evolved not eased. The trade deficit is large, IP and tech theft are growing more dangerous, predatory development finance practices continue and Chinas leverage in rare earths, semiconductors and control over supply chains threatens global development and American autonomy.CLICK HERE TO GET THE FOX NEWS APPTikTok is a headline issue impacting critical issues of data, influence and national security. But it is also an essential lever to counter the new pressure points China is pressing. Madrid and Fridays TrumpXi call offer a chance to reshape this broader contest.As I demonstrate in "A Seat at the Table," President Trumps strategy and policies during his first administration allowed us to exert maximum pressure on our counterparts and to stay the course with firm negotiating positions and clear red lines. Last weeks dialogues demonstrate that Trump will continue to insist on substance over symbolism, an approach critical to our national interest.CLICK HERE TO READ MORE FROM MITCHELL A. SILK
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