Rare Earths vs. Microchips: Schulz Trade Law on the U.S.–China Trade Standoff
- Schulz Trade Law
- Jun 11
- 3 min read
Updated: Jun 12
Rare Earths vs. Microchips: Schulz Trade Law on the U.S.–China Trade Standoff
June 10, 2025
In an interview with WLW Radio Cincinnati, international trade attorney Michelle Schulz, founding partner of Schulz Trade Law, PLLC, offered expert analysis on the renewed U.S.–China trade negotiations. The talks, centered around rare earth minerals and microchip technology, have global economic and national security implications—and Schulz brought clarity to an otherwise murky geopolitical landscape.
What's on the Table: Rare Earths for Chips
At the heart of the negotiations is a 90-day suspension of tariffs as both nations attempt to broker a deal. The U.S. heavily depends on China's rare earth minerals, which are critical components in everything from electric vehicles and smartphones to missile defense systems. Meanwhile, China seeks access to American microchip technology, which is essential for AI development and high-performance manufacturing.
“It’s rare earth minerals versus microchips,” Schulz summarized. “China wants our microchips. We want their minerals. Both are essential to our respective economies and national defense.”
Why the Stakes Are So High
Schulz noted that while the U.S. is working to onshore rare earth production, it faces environmental, economic, and logistical hurdles. Mining these elements domestically is possible, but complicated by complex separation processes and prior business failures.
China, on the other hand, maintains a strategic advantage by controlling 90–100% of the global rare earth supply. According to Schulz, they understand how difficult it is for the U.S. to rebuild a domestic supply chain from scratch: “Their leverage is really pretty strong.”
Courts, Compromises, and Corporate Espionage
While the Court of International Trade recently ruled against the current application of some tariffs, a 90-day injunction is in place, pending appeal. Schulz expects that by late summer, a partial compromise may emerge—but not a full resolution.
She also highlighted a significant omission in the current talks: intellectual property protection. China’s long-standing pattern of IP theft has been largely ignored in these recent negotiations, despite its impact on American innovation and manufacturing.
“My firm just had a meeting on corporate espionage. It’s everywhere. They're stealing our technology all the time.”
Looking Ahead: What Can We Expect?
When asked whether a full resolution is possible, Schulz remained cautiously realistic. “This won’t be resolved in a couple days in London. If anything happens, it’ll be a middle ground that doesn’t fully satisfy either party.”
With implications stretching from the Court of Appeals to supply chain resiliency and national security, Schulz’s insights underscore the importance of having seasoned legal counsel navigate the complexities of international trade.
Need guidance navigating international trade law, tariff compliance, or technology exports? Contact Schulz Trade Law, PLLC for strategic legal solutions tailored to your business.
WLW Radio, Cincinnati Scott Sloan Show
Host: Scott Sloan // https://www.facebook.com/scottsloan700WLW // @scottsloan
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