Despite a 90-day truce in its trade war with the United States, China appears to be maintaining tight control over its rare earth exports – preserving a key source of leverage in future negotiations amid intensifying strategic rivalry with Washington.

Markets appear to be writing off the latest Sino-American trade conflict as quickly as they priced it in. China’s benchmark CSI 300 index is up 1.4% this year, marking a full recovery from its sharp drop in early April after President Donald Trump announced a 34% reciprocal tariff on Chinese goods,

China’s defiant stance in negotiating a tariff truce with the US has convinced some countries they need to take a tougher position in their own trade talks with the Trump administration.