High-level trade negotiations between the United States and China are set to unfold today, with one expert revealing what he believes is America's ultimate advantage in the growing rivalry between the two superpowers.
According to Fox Business, Fox News contributor and Heritage Foundation senior fellow Michael Pillsbury identified America's economic potential as the critical factor that could determine the outcome of long-term competition with China.
"The key for our side is unleashing our own economy," Pillsbury stated during an appearance on "Varney & Co." ahead of the crucial meeting in London. "There's just a whole series of things that President Trump has already started. That's going to be our sort of secret sauce or secret weapon in this kind of long-term competition with China."
Dueling perspectives on China's strength
Today's trade talks will reveal whether China approaches negotiations from a position of weakness or strength, according to Pillsbury. The outcome could validate competing theories about China's economic resilience under pressure from Trump's tariff policies.
"You've got one set of commentators. I call them extremists. They portray China as weak, about to collapse, unemployment just in a terrible situation. And they use the word desperate; 'China is desperate to make a deal,'" Pillsbury explained, noting that if this assessment proves accurate, "these talks will only last two or three hours."
However, Pillsbury believes the reality is quite different. "The one I think is actually happening, China is actually quite strong," he cautioned. "They've discovered this rare earth card they can play that makes us desperate."
High-stakes trade delegation
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Ambassador Jamieson Greer will represent American interests in the London negotiations on Monday. Their mission follows recent escalations in trade tensions between the world's two largest economies.
President Trump announced the delegation on Truth Social after speaking directly with Chinese President Xi Jinping last Thursday. The high-level conversation aimed to restart stalled negotiations following accusations that China violated a preliminary trade agreement reached last month.
The stakes have risen considerably since April, when Trump implemented his reciprocal tariff plan that included duties as high as 145% on certain Chinese goods. Beijing responded with retaliatory tariffs, intensifying the economic standoff.
Rare earth concerns and economic vulnerability
Pillsbury warned that control over rare earth minerals gives China significant leverage in negotiations that could impact critical American industries. These elements are essential components in everything from advanced electronics to renewable energy technologies.
In what he described as a worst-case scenario, American chip manufacturers, battery producers, and rare earth processing facilities could face complete shutdowns if China chooses to restrict access to these critical materials. Such a move would dramatically impact U.S. manufacturing capabilities and technological development.
"These talks today are going to give us a clue [about] just how strong China is and just how we are. We'll be looking for it. That's the gamble that's going to be taking place," Pillsbury stated, highlighting the strategic importance of the London meeting.
Economic unleashing as competitive strategy
President Trump's focus on revitalizing the American economy represents the administration's core strategy for long-term competition with China. Pillsbury's analysis suggests that domestic economic strength provides the foundation for successful international negotiation.
The Heritage Foundation senior fellow indicated that policies already implemented by the Trump administration aim to bolster American economic performance and competitiveness. These measures are designed to create sustainable advantages that can counterbalance China's growing economic and technological influence.
Markets appeared cautiously optimistic about the talks, with U.S. stocks trading slightly higher as investors awaited news from London that could significantly impact global trade relationships and supply chains.
