Part 9/16:
Trade talks around soybeans and rare earth materials highlighted the geopolitical risks of dependence. President Biden expressed confidence that China would return to purchasing soybeans, especially to counteract the damage to American farmers, notably in the Midwest. Meanwhile, a looming tit-for-tat over export controls and investment restrictions signaled ongoing tensions.
The Chinese Economy and U.S. Leverage
Scott Bessant noted that China’s fragile economy could be pressured further if tariffs or export restrictions are implemented, but warned that escalation could backfire. The region’s dependence on Chinese markets complicated U.S. efforts to leverage trade disputes, with China’s investments in South America and Venezuela adding geopolitical layers to the negotiations.