Navigating TikTok Negotiations: A Strategic Tool Against China’s Dominance in Rare Earth Materials

Navigating TikTok Negotiations: A Strategic Tool Against China’s Dominance in Rare Earth Materials

Last week in Madrid, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer engaged in discussions with Chinese Vice Premier He Lifeng and Commerce Minister Li Chenggang. This meeting culminated in the announcement of a framework agreement concerning TikTok, the widely used app owned by the Chinese company ByteDance, which has millions of American users.

However, the TikTok narrative extends beyond just the app itself. It represents a vital tactical advantage for the U.S., particularly in the context of balancing power against China’s increasing control over critical resources.

The Broader Significance of TikTok

TikTok embodies critical concerns surrounding data control, foreign ownership, and algorithmic influence—issues that are paramount for national security. Yet, the app also serves as a strategic tool within the U.S. trade arsenal. By leveraging TikTok in negotiations, America can effectively address and counter China’s growing influence over rare earth elements, which are essential for various technologies, as well as the semiconductor industry.

Reflections from Trump’s Administration

During my tenure in President Donald Trump’s first administration, commonly referred to as Trump 45, we grappled with significant issues like trade deficits, intellectual property piracy, and China’s aggressive Belt and Road Initiative. These challenges were intertwined with predatory economic practices in trade, technology, and finance. Now, as we look towards Trump 47, the complications have expanded, yet the psychological tactics employed by Chinese negotiators remain unchanged.

The appropriation of a psychological approach in negotiations has long been a Chinese tactic. During a pivotal trip to Beijing in March 2018, I found myself at the center of high-stakes negotiations aimed at redefining the U.S.-China economic relationship. With an intense sense of anticipation, I boarded the flight with a comprehensive framework document crafted to tackle various dimensions of this relationship.

Expect the Unexpected

Upon arriving at the U.S. Embassy, our team discovered an unexpected twist—a new proposal drafted by the Chinese, presented just hours before our negotiations. This development exemplified the unpredictable and often confrontational nature of diplomacy with China. A tense internal debate erupted as we assessed how to respond to this last-minute shift.

As we transitioned to the meeting location, the gravity of the situation heightened. I was instructed to accompany Secretary Mnuchin, tasked with translating the newly introduced document. The stakes were escalating as we sped through Beijing’s bustling streets. I furiously combed through the Chinese text in the backseat, translating it in real-time for the team.

Strategies for Modern Trade Negotiations

Despite the chaos surrounding us, the secretary maintained his composure. Upon our entrance to the meeting room, after cordial diplomatic exchanges, Secretary Mnuchin directly addressed the newly presented draft, stating, “We received your draft. Thanks for sending it over—but we’re going to use our draft for today.” This firm stance was aligned with President Trump’s directive to prioritize substance over mere formalities.

As we move forward, it is important to recognize the geopolitical landscape currently dominated by China’s assertiveness. Today, China’s grip includes significant control over crucial resources such as rare earth elements, which are essential for various technologies. Reports indicate that China now accounts for approximately 70 percent of global rare earth mining and an overwhelming 90 percent of refining capabilities.

The Semiconductor Challenge

The semiconductor domain showcases a similar trend. While U.S. firms continue to excel in chip design and advanced research, China’s share of the industry’s value added has notably surged. The country’s ambition for self-sufficiency in semiconductor production has significant implications for global tech dynamics.

China is actively utilizing its dominance in these critical industries as leverage in trade negotiations. For instance, in response to tariff measures during the Trump era, China implemented export controls and licensing requirements on certain rare earth elements in 2025. This tactic reflects a broader strategy to influence negotiations through control of indispensable resources.

Persistent Challenges and Ongoing Pressures

The challenges presented during Trump’s initial term have simply evolved in complexity. America’s trade deficit remains significant, and the threat of intellectual property and technological theft looms larger than ever. China’s strategies regarding critical minerals and supply chain control pose serious risks to global economic stability and U.S. autonomy.

While TikTok represents a prominent issue impacting data security and national influence, it also serves as a pivotal bargaining chip against the growing pressure exerted by China. Recent dialogues in Madrid, alongside ongoing communications between Trump and Xi, present an opportunity to redefine this competitive landscape.

A Vision for Future Diplomacy

As highlighted in my book, A Seat at the Table, the strategic approaches developed during Trump’s administration established a framework for exerting pressure on negotiation counterparts. Last week’s discussions showcase Trump’s commitment to emphasizing concrete outcomes over superficial gestures, a necessity for protecting our national interests. Looking ahead, the negotiation tactics surrounding TikTok and similar leverage points will become more critical as U.S.-China relations continue to evolve.