Trump enlists 5 allies to counter China on rare earths and tech – POLITICO

Beijing has wielded its dominance of the sector through export restrictions intended to hit back against the Trump administration’s aggressive tariff policy on Chinese imports.

The declaration also reflects U.S. concern about China’s massive investment in artificial intelligence and quantum computing that could give it a competitive edge in the 21st century economy.

“It’s an industrial policy for an economic security coalition and it’s a game changer because there is no grouping today where we can get together to talk about the AI economy and how we compete with China in AI,” Helberg said. “By aligning our economic security approaches, we can start to have cohesion to basically block China’s Belt and Road Initiative — which is really designed to magnify its export-led model — by denying China the ability to buy ports, major highways, transportation and logistics corridors.”

Helberg said that the Trump administration aims to expand the coalition from the initial five countries that sign the declaration to include more allies and partners with mineral, technological and manufacturing resources.

The signing of the declaration kicks off the administration’s one-day Pax Silica Summit, which will include officials from the European Union, Canada, the Netherlands and the United Arab Emirates. The summit will feature discussions about cooperation in areas such as advanced manufacturing, mineral refining and logistics.

“This grouping of countries will be to the AI age what the G7 was to the industrial age,” Helberg said. “It commits us to a process by which we’re going to cooperate on aligning our export controls, screening of foreign investments, addressing anti-dumping but with a very proactive agenda on securing choke points in the global supply chain system.”