China approaches Trump summit with rare earth leverage
Chinese officials believe Beijing has the ability to retaliate strongly if Washington increases trade pressure, according to people familiar with the matter.
The assessment comes as China prepares for a summit between President Xi Jinping and Trump.
The sources said Beijing thinks it can both respond and withstand pressure if the United States escalates.
They spoke on condition of anonymity because they were not authorised to comment publicly.
The stance matters because rare earth export curbs are part of the leverage now shaping China's approach.
The two sides also agreed to a trade truce in October, under which Washington eased certain tariffs, China resumed soybean imports and Beijing suspended some rare earth export curbs.
That earlier arrangement is now part of the backdrop to the summit, with trade and strategic materials again central to the relationship.
The latest assessment suggests Chinese officials see more room to resist pressure than they did during earlier rounds of talks.
The report does not say whether any new measures have been taken, or whether the summit agenda has been finalised.
