US, Denmark and Greenland Close Security Deal, Paving Way for Permanent US Military Presence
Denmark and Greenland have confirmed that the security agreement being drafted with the United States will not affect the sovereignty or territorial integrity of the Kingdom of Denmark, after President Donald Trump said the deal would give the US a long-term controlling role in Greenland's security. The agreement will open the way for the US military to significantly expand its role and presence in Greenland, while imposing restrictions to prevent countries the US regards as rivals from establishing military bases or investing in ventures deemed sensitive without US approval. The US already holds rights to overflight, access and basing in Greenland under an agreement dating from 1951, and the new deal will upgrade those rights to a more permanent character, covering restrictions on non-NATO countries establishing bases in Greenland as well as screening of certain types of investment. A formal signing is expected during next week's United Nations General Assembly. Greenland's Prime Minister Jens-Frederik Nielsen stressed that the agreement still affirms sovereignty and territorial integrity, as well as the right of Greenland's people to determine their own future. NATO said it welcomed the agreement, seeing it as helping to strengthen security, stability and cooperation in the Arctic region. Earlier, the European Union announced a 200 million euro investment plan for Greenland, or about 232 million US dollars, focused on critical minerals, satellite communications and renewable energy, and offered to raise its support budget for Greenland over the 2028-2036 period to 530 million euros, up from 225 million euros under the current budget framework.
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China Rare Earth Group in talks to acquire Shenghe Resources, sources say
China Rare Earth Group, a state-owned rare earth giant, is in talks to acquire Shenghe Resources, according to two people familiar with the matter. The talks began this year, and China Rare Earth Group wants to take a controlling stake, the sources said. If a deal is reached, Shenghe's holdings in overseas companies would be transferred, including a 3% stake in US rare earth company MP Materials, which would put China Rare Earth Group in the position of investing in MP, whose largest shareholder is the US Department of Defense. A successful acquisition would bring one of China's last major privately owned rare earth mining and refining companies under China Rare Earth Group, ending a decades-long effort to consolidate the sector under state control. Shenghe acquired Australia's Peak Rare Earths last year. According to one of the sources, a deal would make it easier for Shenghe to secure the quotas the Chinese government uses to manage supply. China Rare Earth Group, Shenghe Resources and China's Ministry of Commerce did not respond to requests for comment.
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Trump and Xi to discuss trade in Washington, with agriculture, energy and rare earths in focus
US President Donald Trump is set to hold trade talks with Chinese President Xi Jinping in Washington on September 24, with trade in agricultural goods, energy and rare earths among the key issues both sides have used as bargaining chips in the trade war and which are likely to be raised again. On agricultural goods, one of the major US exports to China worth 29 billion dollars in 2024, China agreed to buy 25 million tonnes of soybeans a year from the United States through 2028, according to the White House, and US officials said China also agreed to buy an additional 17 billion dollars of other agricultural products during Trump's visit to Beijing in May. US Trade Representative Jamieson Greer said on September 3 that incentive measures to promote US agricultural sales to China could be announced. On energy, Bloomberg reported on Tuesday, September 15, that energy tariffs could be part of a 30 billion dollar reciprocal tariff reduction package, which was signalled after the May summit but has not yet been implemented. Meanwhile, US energy imports between 2020 and 2024 were worth between 7.5 billion dollars and 12 billion dollars a year. As for rare earths, where China controls production and has restricted exports to the United States, the issue has not been fully resolved. Reuters reported that US officials have demanded China honour its commitment to maintain continuous deliveries of these critical raw materials, and ahead of this summit the United States signalled the possibility of lifting some sanctions while threatening to impose additional ones. Trump said he would consider lifting some sanctions after the visit to Beijing.
