Xi Warns Global Leaders Against Siding with US on Supply Chains
On Friday, Chinese President Xi Jinping warned global leaders about the risks of aligning with the United States in attempts to lessen dependence on Chinese supply chains, as per reports. During his opening address on the concluding day of the Asia-Pacific Economic Cooperation Summit, Xi stated, “Apec economies should oppose protectionism, resist unilateral bullying, and prevent the world from returning to the law of the jungle.” The Chinese president emphasized the need for more robust industrial supply chains, implicitly critiquing Western efforts to relocate production outside of China. He emphasized that China would “join hands, not let go,” and concentrate on “extending chains, not breaking them.”
Xi’s remarks came as China stood as the sole superpower present at the summit following US President Donald Trump’s departure from South Korea a day earlier. While Xi emphasized the need for greater unity, Beijing’s recent actions have undermined this message. Earlier this month, China proposed broad new export controls on rare earth metals, a move that could provide it with significant leverage over countries reliant on these materials. While Beijing asserted that the measures were a reaction to US trade restrictions, the proposal sparked apprehensions among countries dependent on China for rare earth supplies.
China is responsible for approximately 90 percent of global rare earth production, which is crucial for semiconductors, batteries, and aircraft manufacturing. Trump refers to Xi as a ‘great leader’ following the rollback of tariffs. Xi’s remarks came after a meeting with US President Donald Trump, suggesting a potential easing of bilateral tensions. Following the meeting, the US lowered tariffs on Chinese goods from 57 percent to 47 percent, while Xi consented to limit the export of chemicals utilized in the production of fentanyl, a synthetic opioid that is contributing to a significant public health crisis in the US.
Both leaders were observed participating in an open dialogue, with Trump referring to Xi as “a great leader” but “a tough negotiator.” The meeting proposed enhancing relations between Washington and Beijing, which had recently deteriorated due to reports indicating that China might broaden export restrictions on essential materials such as rare earth minerals. The escalation led Trump to threaten further tariffs of as much as 100 percent, effective November 1.
