Tensions between the United States and China have once again spiked after US President Donald Trump warned that he might pull out of an anticipated summit with Chinese leader Xi Jinping and introduce steep tariffs on Chinese goods. This dramatic threat came shortly after China implemented controls on exports of rare earth minerals—a move that could have profound implications for global industries and the African continent.
President Trump, via his Truth Social platform, decried China’s decision as “very hostile,” alleging that Beijing’s export restrictions on rare earth elements threaten essential supply chains. Rare earths are critical in the production of modern technology, from smartphones to electric vehicles, and military hardware—a fact not lost on industry leaders in Africa, where similar minerals are found in countries such as Nigeria, the Democratic Republic of Congo, and South Africa.
He further claimed that China had notified numerous countries of its new measures, documenting restrictions on each element related to rare earth production. “There is no way that China should be allowed to hold the World ‘captive,’” Trump stated emphatically, as quoted on social media on Friday.
These comments cast serious doubt over the upcoming Asia-Pacific Economic Cooperation (APEC) summit set to take place in South Korea. The meeting was expected to be the first official engagement between the two leaders since Trump’s return to office in January. “I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” he posted, indicating that plans remain uncertain.
Raising the stakes, Trump warned that his administration was actively considering a “massive increase of Tariffs on Chinese products coming into the United States of America.” Such action could reignite the trade war that has periodically dominated US-China relations.
While Chinese officials have yet to issue an official response to Trump’s latest remarks, the immediate fallout has been felt in financial markets globally. Wall Street reacted swiftly, with major indexes suffering noticeable losses—particularly the Nasdaq, which reportedly slipped by two percent in late morning trading. The US dollar, typically seen as a safe-haven currency, also dropped in value against other major currencies.
Rare earth minerals, though not always headline news, are at the heart of today’s advanced technologies. China remains the dominant global supplier, controlling about 60% of global production according to industry estimates. However, African nations—long recognized as resource-rich—have untapped deposits that could, with investment and political stability, offer alternative supply routes for the global market.
Trump, expressing frustration over China’s timing, remarked, “Some very strange things are happening in China! They are becoming very hostile.”
‘Lying in wait’
According to President Trump, the US has received messages from other countries expressing their anxiety over what he described as “great Trade hostility” from China. He accused Beijing of “lying in wait” after six months of reportedly improving relations, including some progress on the question of American control over TikTok as mandated by a US law passed last year.
He said, “Dependent on what China says about the hostile ‘order’ that they have just put out, I will be forced, as President of the United States of America, to financially counter their move.”
This standoff comes just weeks after President Trump voiced hope about meeting Xi Jinping at the APEC forum, including revealing intentions to visit China in the coming year.
Earlier this year, the rival nations traded a series of escalating tariffs that threatened to halt commerce between the world’s largest economies. Calls for a truce were eventually heeded, though the relationship has remained fragile, and the threat of renewed confrontation looms large.
Notably, Trump recently pledged to urge Xi Jinping to increase purchases of US agricultural products. American soybean growers—some of the most affected by the ongoing trade wars, and a core voting bloc in Trump’s successful 2024 re-election—are said to be grappling with market turbulence and uncertainty as a result.
In a related measure, China had implemented “special port fees” targeting ships built or operated by the United States. This was seen as a counter to US-imposed charges on Chinese-linked vessels announced in April, illustrating how quickly previously agreed terms can unravel.
Adding to the unfolding tit-for-tat responses, the US Federal Communications Commission (FCC) announced the removal of “millions” of online listings for banned Chinese products from American e-commerce platforms, citing national security concerns. Brendan Carr, who heads the FCC, claimed, “The Communist Party of China is engaged in a multi-prong effort to insert insecure devices into Americans’ homes and businesses,” posting his remarks on X (formerly Twitter).
What Does This Mean for Nigeria and West Africa?
The global tug-of-war over rare earth elements has direct and indirect implications for African economies. Nigeria and several West African neighbours have promising mineral reserves, though these resources remain largely underdeveloped. Experts argue that if African nations can create enabling environments—through reforms, infrastructure investment, and security—there is a significant opportunity to become alternative suppliers for global tech, automotive, and defense industries that depend on these components.
Dr. Ayo Rabiu, a mineral development consultant in Lagos, explained: “This is not just a superpower issue. The rare earths market is a huge opportunity for Africa—especially Nigeria. Governments here can step in to incentivize exploration and responsible mining, attract global investors, and reduce over-reliance on oil. However, transparency, environmental care, and community benefits must be ensured.”
Some Nigerian entrepreneurs already see the silver lining. Chidera Okonkwo, a tech manufacturing business owner in Ogun State, pointed out that supply disruptions from China could spur increased investment in African mineral sectors: “If global giants start to diversify their source countries, we could see new jobs, technology transfer, and infrastructure—if we do this right and learn from past mistakes.”
Balancing Risks and Opportunities: A Continental Perspective
However, significant hurdles remain. Past attempts to scale up mining for global supply have sometimes led to community conflicts, environmental degradation, and, in some regions, allegations of worker exploitation. Civil society activists emphasize the need for modern regulatory frameworks to ensure that any rare earths boom in Africa benefits local populations, safeguards workers, and prevents negative environmental impacts.
On a broader scale, international disputes over critical materials like these may also shape Africa’s diplomatic options. As developed nations compete for strategic resources, African leaders are positioning their countries to avoid falling prey to “resource nationalism” while negotiating fair trading terms.
Globally, the current standoff between Washington and Beijing could add further volatility to the commodity markets, influencing everything from the cost of smartphones to electric vehicles. According to a 2023 report by the United States Geological Survey (USGS), disruptions in rare earth exports from any major supplier can send price shocks across the world, affecting both consumers and manufacturers—including in Nigeria where imported electronics are already expensive.
Looking Ahead: What Next?
While world leaders weigh their next moves, industry watchers and policymakers across Africa are taking note. The challenge for policymakers in Nigeria and elsewhere will be balancing the need for foreign investment with local job creation, environmental stewardship, and good governance.
As President Trump signals possible escalation, stakeholders in West Africa are asking critical questions: Could this be a turning point for local mineral industries? Will African governments seize the initiative to benefit their citizens? And how might ongoing superpower rivalries shape opportunities—and risks—for Nigeria and its neighbours in the years to come?
Share your opinion: Do you think Nigeria and other West African countries are ready to step up as alternative suppliers of these vital minerals? What safeguards should be in place to ensure local communities benefit? Drop your thoughts in the comments below and stay tuned for more updates on global events and their impact on Africa.
Source: AFP
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