MICHEL MARTIN, HOST:
President Trump says the U.S. reached a deal with China to reset their trade relationship - this after two days of marathon talks in London. Full details of what U.S. officials called a framework deal have not yet been released. At the heart of the negotiations were rare-earth elements, which are used in many pieces of sophisticated technology. China has a near monopoly over many of them. NPR's international affairs correspondent Jackie Northam is with us now to explain why. Good morning, Jackie.
JACKIE NORTHAM, BYLINE: Good morning, Michel.
MARTIN: First of all, would you just tell us what we know about the talks?
NORTHAM: They were an effort to revive an agreement made last month that was aimed at lowering trade tensions between China and the U.S. And one of the main things U.S. negotiators were looking for in these talks was for China to accelerate exports of rare-earth minerals. This morning, Trump said that the U.S. was going to get rare earths. In exchange, Chinese students would be allowed to study in the U.S. Now, Trump did note that this framework still has to be signed off by him and China's president, Xi Jinping.
MARTIN: Why is it so important that the U.S. has access to the rare-earth elements?
NORTHAM: Well, rare earths are actually a bundle of 17 elements, and they're critical components for this new age of technology - you know, robotics, smartphones, AI. They're used for renewable energy and, you know, batteries. And, certainly, they're key for advanced weaponry, like missiles and fighter planes. So, yes, rare earths are absolutely crucial for American economic competitiveness, national security, defense. And the issue is that China has a near monopoly, as you said, on producing and processing them.
MARTIN: And given the importance of rare earths to the U.S., presumably, China's dominance gives Beijing some leverage over Washington. Would that be fair to say?
NORTHAM: Oh, yeah, definitely. You know, and we're seeing this play out now. Earlier this year, when Trump's tariffs came to a head, China stopped exports of several rare-earth elements. And, you know, that had an impact on the auto industry here, on defense. And, you know, they lifted those export bans on some rare earths last month, but the U.S. accused China of releasing them very slowly, and that's what's led to these talks.
MARTIN: So if that's the case, Jackie, why can't or why isn't the U.S. producing and processing rare earths? Is it because there aren't any here in the U.S.?
NORTHAM: There are, but there's only one mine here in the U.S. right now producing rare earths. At one time, you know, around the mid-20th century, the U.S. was a leader in producing and processing rare earths, but, you know, that began to collapse starting in the 1980s, in part because processing them can be environmentally damaging. And I spoke with Ted Wittenstein. He's a specialist on U.S., China and technology security issues at Yale University. He said China isn't concerned about the environmental impact.
ED WITTENSTEIN: It has an ability to sort of cut through bureaucratic red tape and create mines in ways that would never be really possible in a lot of other Western countries.
NORTHAM: And, you know, Michel, it's fair to say that there is a global race for rare earths given how important they are for technology and defense. President Trump has signed an executive order invoking wartime powers to help boost production of rare-earth elements here in the U.S., but it will take a long time for that to happen. There are issues with licensing and infrastructure and financing. Other countries produce rare earths - Canada, Ukraine, Greenland. But in the meantime, you know, the U.S. will still have to rely on China to supply it with rare earths.
NORTHAM: Thanks very much, Michel.
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