Fact Check Analysis: Trump Bemoans How ‘HARD’ It Is to Strike a China Deal

Fact-Check Analysis

Why Was This Article Flagged for Fact-Checking?

This article was flagged due to growing concerns among readers about the U.S. administration’s recent moves targeting Chinese STEM students and major budget reductions in science funding. The user specifically asked how these policies might reshape U.S. innovation, academic freedom, and global competitiveness. Understanding what’s factual and what might be missing in this coverage is critical in such a high-stakes geopolitical and economic context.

Historical Context

U.S.-China economic relations have long been fraught with tension, especially in the realms of trade, technology, and industrial policy. The Trump Administration’s first term (2017–2021) saw tit-for-tat tariffs, export bans, and obstacles for Chinese students in high-tech fields. Upon Trump’s re-election in 2024, these policies have surged again, revived under a theme of safeguarding national security and boosting domestic manufacturing. However, critics argue these efforts may undermine America’s innovation engine: its universities and scientific institutions.

Claim #1: “American carmakers are desperately seeking workarounds to the export controls — including potentially moving some production to China.”

This claim is partially true but lacks critical context. According to multiple reports, including an April 2025 piece by Reuters, some automakers are exploring newer supply chains due to China’s rare earth metal controls. Ford and GM have acknowledged that mineral access remains a concern, but there’s no verifiable confirmation that either company is planning to move significant automobile production to China. In fact, the Biden-era CHIPS Act and Trump’s America First Tech Initiative provide incentives for reshoring production inside the U.S., not offshoring them to geopolitical rivals. The phrasing “desperately seeking workarounds” overstates the immediacy of the risk and could mislead readers into thinking mass shifts are already underway—something not supported by official manufacturing data or company statements.

Claim #2: “China … has a lock on rare earth metals, [and] has stepped up export controls of the crucial resources.”

This claim is accurate. China accounts for over 70% of global rare earth production and maintains strict control through state-run enterprises. In May 2025, the Chinese Ministry of Commerce restricted exports of key rare earth elements used in semiconductors, electric vehicles, and military systems as retaliation against U.S. tariffs. The Wall Street Journal confirmed that these changes directly impact the U.S. supply chain. Additionally, the U.S. relies on China for about 78% of its rare earth imports, making the strategic vulnerability real.

Claim #3: “Negotiations with Beijing are in trouble.”

This is consistent with official statements and verifiable news reports. Treasury Secretary Scott Bessent publicly stated on June 3, 2025, that talks with the Chinese delegation had become “a bit stalled.” This was echoed by multiple outlets, including Bloomberg and Politico, which noted that core disagreements over intellectual property protections and market access remain unresolved. Trump’s social media posts and Politico’s reporting that he is “obsessed with holding a call with Xi” further suggest diplomatic frustration. Therefore, the assertion that talks are faltering aligns with known facts.

Conclusion

Overall, the article provides a mostly accurate overview of the strained U.S.-China trade negotiations and resulting industry-wide complexities. However, it misses key pieces of context—especially around the impacts on U.S. innovation and science funding, which are central to the user’s concern. The idea that carmakers may flee to China lacks substantiation and exaggerates the current situation. Meanwhile, the reporting on rare earth dependency and stalled diplomacy is well-supported and reflects reality. A more balanced analysis would have included how domestic science cuts and international student restrictions might subtract from America’s competitive edge in the global innovation race.

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