China is holding back materials America needs to build weapons and high-tech products until Trump speaks with President Xi

Some Chinese rare earth suppliers are declining to ship materials to the United States, worried about facing repercussions from Beijing. Per Reuters, the pause comes just weeks before President Xi Jinping is expected to visit Washington soon.

U.S. officials have repeatedly asked China to honor commitments made in Busan and Beijing over the past year meant to keep rare earth export licenses flowing smoothly. Even so, the persistence of the problem has reportedly landed it on the U.S. planning agenda ahead of Xi’s visit, according to a source familiar with the matter.

One source told Reuters they were aware of four specific instances in which Chinese firms declined to send material, out of concern it could end up resold to banned users. All of the sources spoke on condition of anonymity given how sensitive the issue is, and Reuters said it could not determine exactly how many Chinese suppliers have refused shipments overall.

This isn’t just about goodwill gestures before a summit

A separate source with direct knowledge of the matter said a handful of Chinese suppliers have refused to ship rare earths to U.S. companies, right around the time China imposed sanctions on the Responsible Business Alliance, a U.S. supply chain monitoring group.

Not everyone is getting the same treatment either. Two sources said license approvals have been even more limited for Indian and Japanese buyers, and one added that Chinese suppliers are largely refraining from shipping material to Japanese firms at all right now.

The European Chamber of Commerce in China told Reuters that while the approval process has technically been streamlined, member companies are still running into problems with how it’s actually being implemented in practice. “What our members would like to see is a commitment to implement a transparent and predictable application process that provides reliable access to rare earth elements,” the chamber said in a statement.

Reva Goujon, a geopolitical strategist at Rhodium Group, offered a more direct read on the situation to Reuters. “China has been very effective in using rare earth export controls to impose restraint on the Commerce Department’s Bureau of Industry and Security.” She adds that she still expects Beijing to loosen its grip on critical raw material controls somewhat around the summit. This despite the growing economic threats made by the two countries.