US calls on Australia in rare earths fight with Beijing

“Obviously, neither we nor our allies are going to go along with that kind of system,” Greer said. “It’s a clear repudiation of everything we’ve been working toward for the last six months.

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“The United States won’t stand for it… [But] this is not just about the United States. China’s announcement is nothing more than a global supply chain power grab.”

Heightened tensions over rare earths are a potential boon for Albanese as he prepares to meet Trump at the White House on Monday, armed with a proposal to supply critical minerals to the US.

The Australian government, including Trade Minister Don Farrell and ambassador to the US Kevin Rudd, has been scrambling to lock in the deal ahead of Albanese’s visit.

The all-important minerals are vital for military hardware, smartphones, electric vehicles and all manner of chip-driven products. Australia has about 36 of the 50 mineral commodities that the US deems critical.

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Since Trump backed away from unprecedented 145 per cent tariffs on Chinese goods earlier this year, the two economic superpowers have agreed to a series of 90-day truces while engaged in tough trade negotiations.

Those talks have soured, however, with Trump last week threatening to impose 100 per cent tariffs on China if it proceeded with additional export controls on rare earths.

Bessent said on Thursday (AEST) the two countries were still engaged in “working level meetings”, and he expected Trump would still meet Chinese President Xi Jinping at the ASEAN summit in Malaysia later this month as planned. “As far as I know, President Trump is a ‘go’ on that,” Bessent said.

But he said the latest provocations from Beijing should be a clear sign to US allies that they must work together to de-risk supply chains and diversify away from China as quickly as possible.

Before leaving for the US, Chalmers said he would use the trip to sell Australia as an investment destination at a time of global churn and uncertainty.

“Whether it’s the AI [artificial intelligence] opportunity or cleaner and cheaper energy, we’ve got a great story to tell the world, and I intend to tell it,” he said.

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