ExclusiveUS–China Rare Earths Deal to Be Finalized by Thanksgiving

Welcome to China In Focus, I'm Paul Greene, in for Tiffany Meyer, our top story. A rare earth minerals deal between the US and China could be done by Thanksgiving. Scott Besant made the remarks during an interview with Fox News that aired on Sunday. After Japan's Prime Minister made statements on Taiwan, Chinese state media and officials stirred anti-Japan sentiment. Chinese tourist trips are suspended. Japan sends a special envoy to ease the tensions. South Korea finally obtains the green light for the US to build a nuclear-powered submarine that's to better counter the military threats from China and North Korea. Tensions are rising between the US and China's ally Venezuela. The Trump administration designated a Venezuelan cartel, allegedly run by the country's president, a foreign terrorist organization. From demanding lost investments to defending land sold without permission, we take a look at what's triggering clashes between Chinese citizens and authorities. Secretary of the Treasury Scott Besant says a rare earth mineral deal between the US and China will hopefully be done by Thanksgiving. He made the remarks during an interview with Fox News that aired on Sunday. We haven't even finished the agreement, which we hope to have done by Thanksgiving. And I am confident that post our meeting in Korea, between the two leaders, President Trump, President Xi, that China will honor their agreement. The US and China announced a framework agreement on October 30. As part of the terms, Washington agreed not to impose 100 percent tariffs on Chinese imports, while China would hold off restrictions on export of crucial rare earth minerals and would buy more American soybeans. During the interview, Besant rejected a recent Wall Street Journal report which said Chinese officials plan to restrict access to rare earths for US companies with ties to the military. When asked what the US would do if China didn't honor that deal, Besant said the US had lots of levers but remains optimistic about the deal for now. Asked whether Chinese companies could be kept out of US stock exchanges, Besant said, quote, all options are on the table. So what are the rare earths and why do they matter? Let's take a closer look. Rare earth minerals are used in almost every technology you can think of. They're present in cell phones, medical devices, wind turbines, weapons, and much more. But what are they and why are they important and are they actually rare? So the term rare earth elements, it refers to 17 chemically similar elements within the lanthanide series. They're often described as the vitamins or the spice of industry because they have enabled our technologies to get smaller and faster and stronger and more resilient. Elements like lanthanum and cerium, some of the most common rare earths, are used in TVs and lighting, while the application of erbium and yttrium can range from nuclear power to lasers. There are two broad categories that have really got the spotlight. The first one is military uses, and that can be from night goggles to precision missiles to radar. And of course, that is a very sensitive issue for nations wanting to guard their access to those kind of minerals. The second area is regarding the energy transition. And there are four specific rare earths that are used to make super strong permanent magnets that are used in motors for electric vehicles and for wind turbines. But are they actually rare? Not really. They're found all over the world. And in terms of the deposits, no, they're not actually rare. What's rare about them is sometimes they're found in very small quantities. And in addition to that, they're mixed with all kinds of other minerals. The difficulty is sometimes extracting each single rare earth from all the other minerals that are involved in the deposit. A new report from the U.S. Agriculture Department is raising concerns about whether China will follow through on U.S. soybean purchases, as according to a report released Friday, China imported only two shipments of American soybeans, roughly 332,000 metric tons. That's far short of the 12 million metric tons China pledged following talks between President Trump and Chinese leader Xi last month. Experts also speculate that Beijing won't follow through with its agreement to purchase 25 million metric tons annually over the next three years. Despite the Trump-Xi talks, China's tariff on U.S. soybeans is still around 24 percent, making U.S. beans more expensive for Chinese buyers. Last year, China purchased more than $12.5 billion worth of U.S. soybeans, accounting for more than half of all U.S. soybean exports in 2024. Meanwhile, a Chinese Commerce Ministry spokesperson refused to confirm that any major soybean purchases were part of the trade deal that was announced. Notably, Chinese officials haven't mentioned those commitments at all. A former USDA economist says China is being intentionally vague on the subject, adding that it's not out of character for Beijing. But U.S. officials have stated that tariffs on China can be adjusted if it fails to follow through on this soybean agreement. And China has urged its citizens to avoid traveling to Japan, and Hong Kong has followed suit. Several major Chinese state-run travel agencies have also suspended tours to Japan. Chinese tourists usually account for about a quarter of all visitors to Japan each year. The move comes after Japan's prime minister made it clear that any security crisis in the Taiwan Strait would directly affect Japan, which could trigger military actions. And she refused to retract her statement. Beijing responded sharply. In a post on X, a Chinese diplomat in Japan threatened to cut off the head of Japan's leader. Meanwhile, state-run media launched personal attacks, and national outlets stirred anti-Japan sentiment. Official propaganda hinted at economic retaliation. In response, Tokyo has sent a special envoy to China to try to ease tensions. The envoy is expected to urge Beijing to stop harming bilateral ties and to end its use of tourism as a political weapon. I believe that this announcement by China about warning against traveling to Japan, which seems to curtail the exchange of people between the two countries, is incompatible with the broad direction of promoting a strategic, mutually beneficial relationship confirmed by the leaders. We have made a firm request for the Chinese side to take appropriate steps. Last week, China's foreign ministry and Ministry of Culture and Tourism advised citizens not to visit Japan. State-owned travel agencies suspended group and individual tours, airlines allowed free ticket changes or refunds, and visa processing has reportedly been paused. However, public reaction in China has been mixed. Some families say they will continue with planned trips, citing politics as irrelevant. Meanwhile, the Japanese film Demon Slayer has outperformed recent domestic releases at the Chinese box office. Amid renewed anti-Japan propaganda on state media and social platforms, the Japan embassy in China has warned its citizens to remain vigilant. Ahead of this week's G20 leaders' summit in South Africa, China has announced that Premier Li Chang has no plans to meet with Japan's Prime Minister, Sane Takeichi. Taiwanese President Lai Ching-teh said China was carrying out a multifaceted attack on Japan, urging China to exercise restraint in order to avoid becoming a troublemaker in the region. He also calls on the international community to pay close attention and continue to do so. Taiwan is launching an unprecedented effort to ready 23 million citizens for emergencies including a potential Chinese attack. Taiwan will send millions of civilian defense handbooks to households across the island this week. It contains instructions on what to do if citizens run into enemy soldiers. The handbook also includes tips on how to talk to children about military invasion. It says any claims that Taiwan would surrender are false. It also gives guidance on locating bomb shelters and preparing emergency kits. The handbook also outlines scenarios Taiwan might face from cyber attacks to sabotage of undersea cables. A Taiwan official overseeing the effort says the booklet shows their determination to defend themselves. The Chinese Communist Party claims Taiwan is part of China despite never having ruled it. It has pledged to take the island by force if necessary. And a big moment for the defense alliance between the United States and South Korea. South Korea finally obtains the green light from the United States to build a nuclear-powered submarine. That's to better counter the military threats from China and North Korea. NTD's Flora Hua has more. The deal is part of a finalized fact sheet on security and trade released by both nations on Friday. The chief of U.S. naval operations says having nuclear-powered submarines can help South Korea better counter China. He adds the key Asian ally has the responsibility to deploy these submarines globally and so it can build a worldwide naval presence. The South Korean side highlights the need to counter North Korea. Having the U.S. consent to build nuclear-powered submarines has been the country's goal for decades. But building such submarines can take years. What's more, the South Korean president confirmed on Friday that the country also secured U.S. approval to expand activities like uranium enrichment and nuclear fuel reprocessing. The deal comes after President Trump met with South Korean President Lee Jong-min two weeks ago. Flora Hua, NTD News. And tensions are increasing between the U.S. and China's ally, Venezuela. The Trump administration has designated the Venezuelan cartel, allegedly run by the country's president, a foreign terrorist organization. Here are the details. It's about protecting America from foreign terrorists. The Department of State has announced it will designate the Venezuelan group known as the Secretary of State Marco Rubio says the designation takes effect November 24th. The Trump administration alleges the organization is led by senior Venezuelan government figures including President Nicolas Maduro and involved in international cocaine smuggling. Maduro has denied these allegations. Rubio said Sunday the Cartel de los Soles is responsible for terrorist violence throughout the Western Hemisphere. The designation will expand federal authorities' ability to pursue the group. It makes it a federal crime for anyone in the U.S. to assist the cartel and allows federal officials to freeze any assets connected to it. Trump was asked yesterday if the U.S. government can target assets inside Venezuela. It allows us to do that, but we haven't said we're going to do that. And we may be discussing, we may be having some discussions with Maduro and we'll see how that turns out. They would like to talk. The move comes after the Treasury Department earlier this year labeled the cartel a specially designated global terrorist. Secretary of the Treasury Scott Besson says Sunday's action further exposes the Maduro regime's facilitation of narco-terrorism. The announcement comes as U.S. forces continue a series of military strikes on vessels they say are involved in narcotics smuggling. This weekend, the military carried out its 21st such operation, bringing the total casualty U.S. Southern Command said Secretary of War Pete Hegseth ordered Saturday's strike in the eastern Pacific, which targeted a vessel linked to a designated terrorist organization. Southern Command said the boat was smuggling narcotics along a known trafficking route. The military said three people on board were killed. U.S. military activity against suspected drug traffickers has expanded across waters near Venezuela and Colombia. President Trump has come under criticism from both Democrats and Republicans for not seeking congressional approval for these strikes. He explained his decision yesterday. I said, go to Congress and let them know we're not letting drugs come through Mexico. We're not letting them come through Venezuela and let Congress know about it. We don't have to get their approval, but I think letting them know is good. Senator Rand Paul and Congressman Thomas Massie, both Republicans, have described the strikes as an overreach of executive authority. Paul has described them as summary executions and extrajudicial killings. The Department of Justice has stated that military personnel involved in the strikes are not liable for prosecution. From demanding lost investments to stopping authorities from cremating a body, here's a roundup of clashes between citizens and authorities across China just last week. A scuffle broke out between a dozen villagers and a construction team sent by the local government in China's Guangdong province last Wednesday. Villagers have been trying to block construction on the land they collectively own. Local authorities sold the land to build a public road without notifying the villagers or offering compensation. Last Wednesday, the authorities sent workers to resume construction and put up shields to keep villagers out. A clash broke out, leaving one female villager reportedly injured. Over in southwestern Yunnan, thousands of villagers successfully blocked authorities from cremating a body by force. We will not cremate his body. Local authorities have been pressuring villagers to cremate deceased bodies, sparking backlash over longstanding burial traditions. Recently, authorities stole a villager's body after burial and demanded the family cremate it. Thousands of residents gathered to help the family rebury the deceased. Authorities tried to stop them, but the villagers succeeded in completing the burial. Elsewhere, in northern Shanxi province, hundreds of residents gathered in front of the local government, demanding the return of their investments. They are among the victims who invested their life savings in a government-backed wealth management firm, but the firm had major operation issues and could no longer return the money. One victim said more than $100 million of their investments are gone. Authorities sent police officers to suppress the protest. Ten residents were reportedly arrested and released later that night. Moving to northeastern Liaoning province, police arrested several fisherwomen last Saturday for speaking out against a local policy. Authorities had suspended local fishing boats from going out into the sea following a few fishing boat incidents. For local fishermen and fisherwomen, the ban comes during peak fishing season, resulting in significant revenue losses, and on top of that, they're being censored from discussing it online. Coming up, a Chinese man from the San Francisco Bay Area sentenced to nearly four years for stealing trade secret technologies used to detect and track missiles. China and Germany have agreed to work towards ending trade tensions and furthering commercial ties. More on that after the break, here on China In Focus. Welcome back to China In Focus. I'm Paul Groening. A Chinese man from the San Francisco Bay Area was sentenced on Monday to three years and ten months in federal prison for stealing trade secret technologies used to detect and track missiles. The technologies were developed for use by the U.S. government. The man, Chen Guangkong, was ordered to pay $77,000 in restitution and find an additional $100,000. Guangkong stole more than 3,600 files from a Southern California company where he worked as an engineer in 2023. Law enforcement also found that this was not an isolated incident and that Guangkong had a long pattern of stealing technology from American companies to benefit the Chinese military. Guangkong had been recruited by China's communist regime in 2016 to collect and pass on information in exchange for financial incentives. Germany and China have agreed to work towards ending trade tensions and furthering commercial ties. The announcement came while Chinese Vice Premier Hu Lifeng and German Finance Minister Lars Klingbeil met in Beijing on Monday. Klingbeil's visit was the first to China by a minister from Chancellor Friedrich Merz's government which took power in Germany roughly six months ago. In my talks today, I received assurances from the Chinese side that German and European concerns about export restrictions on rare earths and critical raw materials are being taken seriously, and that we want to find joint solutions that ensure reliable access and reliable supply chains. Klingbeil further taught on the topic of Chinese overcapacity in key sectors like steel, solar and electric mobility. He said both countries agreed it should be a shared task to lower such overcapacities and ensure stable competitive conditions. Vice Premier Hu said Beijing was committed to working with Germany to expand joint cooperation. The two countries are bound by an important commercial relationship despite their differences. Chinese companies are now serious competitors for German firms in many sectors. However, data also showed China bought $95 billion worth of German goods last year, with a large portion being cars, while Germany bought $107 billion of Chinese goods, mostly chips and other electronic components. Tesla is aiming to break away from manufacturing with Chinese-made parts. That's at least when it comes to cars built in America. The company is pushing its suppliers to pull supply chains out of China due to ongoing trade tensions between Washington and Beijing. According to the Wall Street Journal on Saturday, Tesla began moving away from China-based suppliers for U.S.-made vehicles earlier this year. The company has already swapped out some parts with components made in other countries and aims to replace the rest over the next year or two. Tesla began rethinking its reliance on China during the pandemic when shutdowns cut off the flow of materials. On top of that, a recent dispute between China and Dutch chip maker Nexperia has slowed the supply of key automotive chips. This has also sparked new discussions inside Tesla about ramping up efforts to relocate supply chains to other countries like Mexico. Tesla's biggest market is the United States, and the cars on American roads are built in domestic factories. The company's chief financial officer says it will take time to secure its supply chains from suppliers based outside of China. That's all for today's China In Focus. I'm Paul Graney. If you have any feedback on the show, maybe you have something you'd like to see us cover, send us an email at chinainfocus at ntd.com. We'd love to hear from you. For round-the-clock original news coverage, visit us at ntd.com or download our NTD app. Thanks for watching. See you soon.