Washington, Oct 21 (AP) President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical-minerals deal at the White House on Monday as the US eyes the continent's rich rare-earth resources when China is imposing tougher rules on exporting its own critical minerals abroad.

The two leaders described the agreement as a USD 8.5 billion deal between the allies. Trump said it had been negotiated over several months.

“In about a year from now we'll have so much critical mineral and rare earth that you won't know what to do with them," said Trump, a Republican, boasting about the deal. "They'll be worth USD 2.” Albanese added that the agreement takes the US-Australia relationship “to the next level.” This month, Beijing announced that it will require foreign companies to get approval from the Chinese government to export magnets containing even trace amounts of rare-earth materials that originated from China or were produced with Chinese technology. The Trump administration says this gives China broad power over the global economy by controlling the tech supply chain.

“Australia is really, really going to be helpful in the effort to take the global economy and make it less risky, less exposed to the kind of rare earth extortion that we're seeing from the Chinese,” Kevin Hassett, the director of the White House's National Economic Council, told reporters on Monday morning ahead of Trump's meeting with Albanese.

Hassett noted that Australia has one of the best mining economies in the world, while praising its refiners and its abundance of rare earth resources. Among the Australian officials accompanying Albanese are ministers overseeing resources and industry and science, and Australia has dozens of critical minerals sought by the US.

The agreement underscores how the US is using its global allies to counter China, especially as it weaponises its traditional dominance in rare earth materials that are used in everything from jet engines and electric vehicles to laptops and phones. Top Trump officials have used the tactics from Beijing as a rallying cry for the US and its allies to work together to try to minimise China's influence.

“China is a command-and-control economy, and we and our allies will neither be commanded nor controlled,” Treasury Secretary Scott Bessent said last week. “They are a state economy and we are not going to let a group of bureaucrats in Beijing try to manage the global supply chains.” Albanese's visit comes just before Trump is planning to meet with Chinese President Xi Jinping in South Korea later this month.

Another topic of discussion was AUKUS, a security pact with Australia, the US and the United Kingdom that was signed during US President Joe Biden's Democratic administration.

Trump noted Monday that AUKUS was established “a while ago” but that the agreement now is “moving along very rapidly, very well.” Albanese said that “our defense and security partnership with AUKUS is so important for us.” John Phelan, the Navy secretary, said that the US wants to take the original AUKUS framework and improve it for the three signatory countries while clarifying “some of the ambiguity” in it.

“So it should be a win-win for everybody,” Phelan said.

The center-left Albanese was reelected in May and suggested shortly after his win that his party increased its majority by not modeling itself on Trumpism.

“Australians have chosen to face global challenges the Australian way, looking after each other while building for the future,” Albanese told supporters during his victory speech. (AP) RUK RUK