The Trump administration’s strategic interest in rare earths is pushing the US towards more pragmatic diplomacy as it seeks to rebuild critical mineral supply chains without China, according to observers.

As a result, there had been cooperation with other countries on resource projects even when broader political ties were strained, they said, adding that Beijing’s dominance in the resources appeared too strong to break soon.

One example is the Phalaborwa Rare Earths Project in South Africa,...