Beijing is betting that economic pressure and diplomatic defiance will force concessions, but its stance could put more strain on its ties with Europe at a crucial time.
Prime Minister Anthony Albanese is trying to deepen ties with China, his country’s biggest trading partner, while being under pressure from the United States.
Secretary of State Marco Rubio wants to bolster ties with Asia to counter Beijing’s power, but President Trump’s tariff threats have nations asking why they should align with Washington.
Beijing has a history of warning Washington about the safety of its Treasury holdings. This time it may have reasons to stay silent, at least publicly.
The deal involves loosening exports of rare earths to the United States and the lifting of some restrictions on U.S. goods to China, China’s Ministry of Commerce said.
Two chemicals used to make the powerful opioid will be more strictly regulated, but an official said it was “the United States’ responsibility to solve the issue.”