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Published 28 Oct, 2025 05:25am

Trade and rare earths: Trump’s deals during Asia tour

TOKYO/KUALA LUMPUR: US President Donald Trump signed a flurry of trade deals and framework agreements with Southeast Asian governments on Sunday as his sweep through the region began at a summit in Malaysia.

Trump’s first visit to Asia since his return to the White House in January appeared to alleviate some fears in a region already bruised by the trade war sparked by his sweeping tariffs.

He also secured promises of greater cooperation on the key issue of rare earths as Washington scrambles to break China’s stranglehold on materials that enable a wide array of modern technology.

‘The law of the jungle’

Chinese Premier Li Qiang on Monday denounced “unilateralism” and said the world should not return to “the law of the jungle” when it came to trade, days ahead of talks between Donald Trump and Xi Jinping.

His comments, made at a regional summit in Kuala Lumpur, were a clear reference to tariffs imposed by US President Trump on many countries, including China, which have disrupted global supply chains and roiled markets.

Chinese premier slams ‘law of the jungle’ ahead of talks

Trump and his Chinese counterpart Xi are due to meet on Thursday in South Korea to try to reach an agreement that would end their ongoing trade war.

“Economic globalisation and multipolarity are irreversible,” Li said in the Malaysian capital, which is hosting the summit of the Association of Southeast Asian Nations.

“The world should not return to the law of the jungle where the strong bully the weak.” Li also called for a strengthened commitment to the global “free trade system.”

At a meeting on the sidelines of the Asean summit, Li said that unilateralism and protectionism were “rampant” and posed “huge risks to the region.” Trump said en route to close US ally Japan that he was hopeful of a deal when he sees Xi on Thursday.

Rare minerals

The US president inked two memoranda of understanding with Malaysia and Thailand, both seeking to “strengthen cooperation” on critical minerals. The deals, which lack specifics, come as the United States grapples with restrictions on rare earths exports imposed by China — the world’s top producer of the minerals crucial to the auto, electronics and defence industries.

A separate trade deal signed with the Malaysian government says Kuala Lumpur had agreed to increatse US access to rare minerals in the country, and to the “expedient development” of the industry “in partnership with US companies”.

Another agreement with Cambodia offers the United States access to the kingdom’s rare earths industry. Lynn Kuok, a Southeast Asia expert at Brookings Institution, said that Trump’s visit to the region “could help place the relationship on a more positive course, for example, by giving momentum to working-level cooperation on mutually beneficial projects such as critical minerals”.

But for the governments that also rely on ties to Beijing, “what is at stake is preserving room to manoeuvre and strategic autonomy,” she said.

Published in Dawn, October 28th, 2025

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