What’s going on here?

The US and China struck a new deal over rare earth minerals on Thursday, making the terms of their high-stakes beef a little less raw.

What does this mean?

China’s been putting the “rare” in rare earths lately, refusing to send many of the critical minerals stateside. That’s a serious trump card (pun intended): rare earths power everything from electric cars to solar cells and military jets. But it looks like the country’s willing to fold. China just agreed to ship over more rare earths – with no expiration date, unlike last time – in exchange for America dropping a few of its export rules.

This might not be the only hard-won handshake we see in the next couple of weeks. The US president is eager to make pacts with ten other trade partners before July 9th, when tariffs are set to be taken off pause. It’ll pay to play ball: the earlier countries make a deal with the States, the better their terms will likely be.

Why should I care?

For markets: Welcome to the red, white, and green.

This agreement should bring supply back to American firms’ supply chains. That means the green transition is a go again: clean energy firms use rare earths to build wind and solar power solutions, while carmakers need them for EVs. Mind you, US manufacturers have been burned before. So, wary of relying on a trade relationship that can turn on a dime, they’re cozying up to mining companies in Australia, Canada, and Africa just in case.

Zooming out: I scratch your back…

China’s not just feeling charitable. Profit from the country’s factories fell 9% between April and May – the biggest drop since October – despite government stimulus checks. So you can see why the country wants the shackles off its export industry: if China’s domestic demand won’t bring home the bacon, America’s international helping probably can.

What’s going on here?

Xiaomi’s answer to Tesla’s Model Y drove the Chinese firm’s stock price to a record high – proof that reinventing the wheel can pay off.

What does this mean?

In its first hour on the market, Xiaomi’s SUV pulled in 289,000 pre-orders. Makes sense: the new model is loaded with advanced features and boasts a longer driving range than Tesla’s Model Y, all wrapped up with a design sleek enough to warrant the nickname “Ferrari” on Chinese social media. Xiaomi’s cherry on top: a price tag of $35,400 – around $1,400 cheaper than Tesla’s local offering. And drivers weren’t the only ones buying. Investors have now pushed the stock up over 70% this year, making it more valuable than BYD’s – China’s premier EV maker.

Why should I care?

For markets: The Biggest Loser.

If you’re trying to trim your figure this summer, you could take a leaf out of Tesla’s book. The OG EV maker has been losing customers to international rivals like BYD and Xiaomi – and with the competition revealing smarter tech and longer battery lives, Tesla’s resorted to price cuts. That’s left the firm’s profit margin at a waifish 5% – down from a much thicker 19% only two years ago. And it might be looking even slimmer soon: Tesla looks set to lose access to cost-saving US government subsidies at the end of this year.

Zooming out: The robots are on sale.

China’s tech companies are brimming with world-class workers, bolstered by government money, and decked out with top-of-the-line chips and cloud solutions. So they have all the right stuff to match – and often beat – America’s best innovators. Chinese firms are quickly bringing AI into everyday life, too, embedding smart services into devices and apps like WeChat and Alipay. Plus, they’re working on taking AI beyond the screen, developing physical solutions like humanoids. And yet, Chinese tech stocks are still trading for less than their US counterparts.