As trade talks continue, China thinks it has leverage over U.S.

Shipping containers are seen at the Yangluo Port on the Yangtze River in Wuhan, China, on May 23. (Andy Wong/AP)

By Katrina Northrop

China has returned to trade talks with the U.S. this week holding, from its perspective, a strong hand: Its economy is bearing up better than many people — including President Donald Trump — expected. It has watched as Trump’s unconventional trade policy has suffered some legal setbacks. And it has a geopolitical ace card: It is controlling the export of much-needed rare earths.