China Expands Economic Pressure Toolkit Before Summit

Beijing has enacted new laws to punish foreign firms that shift supply chains while tightening rare earth exports. The measures aim to build leverage before a mid-May meeting between President Xi and President Trump.

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Despite a temporary trade truce between the United States and China, Beijing is rapidly expanding its arsenal of economic pressure tools. Following a high-stakes summit in Busan, South Korea, where a fragile agreement was reached, the Chinese government has moved beyond reactive measures to establish a sophisticated legal and regulatory framework aimed at countering American influence.

The flags of the United States and China are displayed side-by-side in a March 20, 2025, illustration. REUTERS/Dado Ruvic/Illustration/File Photo
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