Australia’s Prime Minister, Anthony Albanese, is set to hold his first summit with US President Trump at the White House on Monday, October 20th. The purpose of the meeting is to secure US procurement of key minerals from Australia. This comes at a time when China is tightening its export controls on rare earth minerals, sparking concerns about global supply chains. Australia is positioning itself as a reliable alternative for the US to counter China’s restrictions on rare earth minerals.
The summit is taking place as tensions escalate in the US-China trade conflict. Customs data released by Chinese authorities on Monday showed a 6.1% decrease in rare earth magnet shipments in September compared to August, ending three consecutive months of growth. The total shipments for the year so far amount to 39,817 tons, a 7.5% decrease from the same period in 2024.
It is worth noting that this decline occurred before Beijing significantly expanded export controls earlier this month.
On October 9th, China’s Ministry of Commerce announced that rare earths, permanent magnets, and related equipment and technologies would be subject to stricter export controls. Products containing Chinese rare earths valued at ≥0.1% or utilizing Chinese rare earth/magnetic material technology for production abroad would require permits before export.
The Trump administration views this move as a violation of the agreement reached with the US in June to relax the circulation of critical minerals. This has quickly escalated tensions in the US-China trade war, intensifying global concerns about China weaponizing trade.
At a global finance ministers meeting held in Washington last week, Chinese rare earth controls were a major topic of discussion. US Treasury Secretary Scott Bessent stated that the US is discussing responses with “European allies, Australia, Canada, India, and Asian democratic countries.”
Analysts believe that the fluctuations in rare earth exports in September signal China’s geopolitical use of the “rare earth card.”
Senior analyst Chim Lee from the Economist Intelligence Unit (EIU) said, “The sharp fluctuations in rare earth magnet exports indicate that China knows it holds a key card in international trade negotiations.”
“The surge in exports in the third quarter was due to China relaxing export controls earlier this year; but following recent tightening measures, this figure is likely to decline again,” he added.
Just before the data was released, President Trump told reporters aboard Air Force One that he did not want China to “play games with us on rare earths.”
Trump also stated that if China committed to purchasing US soybeans, he might delay the decision to impose a 100% tariff.
To highlight the importance of mineral cooperation, the delegation accompanying the Australian Prime Minister’s visit includes not only foreign affairs or defense ministers but also the resources minister.
Australia is seeking to address the supply challenges of its Western allies with its abundant mineral resources. Australian Ambassador to the US Kevin Rudd emphasized last week that the US has shortfalls in 50 designated critical minerals and rare earths. With mutual investment, Australia could meet the needs of 30 to 40 of these, especially in rare earth processing.
“Australia is like a periodic table,” Rudd said. “Having resources is one thing, knowing how to mine is another – because mining itself is a high-tech industry – and we have the world’s largest and strongest mining companies.”
Sources revealed to Bloomberg that representatives from over 10 Australian mining companies were informed at a meeting in Washington last month that the US government is evaluating various mechanisms to invest in these companies. Earlier this month, miners stated they were invited to Washington to brief Rudd on their projects.
Australia is also eager to hear the results of the ongoing review of the AUKUS agreement by the US. Australian officials have consistently expressed their belief that this security agreement with the US and UK will continue.
Insiders indicate that Australia actually sees this review as aiming to strengthen rather than terminate the agreement.
Albanese stated on Sunday, October 19th, “Australia has stood shoulder to shoulder with the United States in every major conflict over the past century.”
Australian officials emphasize that under the AUKUS framework, Canberra has already contributed $2 billion to boost the production speed of US submarine shipyards and is prepared to provide maintenance for US “Virginia-class” submarines at its Indian Ocean naval base starting from 2027.