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The United States is proposing a new trade bloc with its allies focused on critical minerals, which are essential for electronics and defense. The plan, often called a 'critical minerals alliance' or 'trade zone,' is aimed at reducing global reliance on China, which currently dominates the supply of these materials.
China's foreign ministry has criticized the US plan, opposing what it calls the creation of 'exclusive blocs' that undermine the global trade order. Separately, President Trump announced a $12 billion plan to create a national stockpile of rare earth minerals, a move also described as an effort to counter China's control over these resources.
Reports also indicate that Nvidia's sales of advanced AI chips to China have been stalled due to a US national security review. Trump separately warned that the US would have a 'very substantial' response if Canada enacted a new trade deal with China.
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