China gears up to weaponize rare earths in trade war
It is necessary to establish that China is preparing to build rare earths in a commercial war. That’s right, China is currently the world’s largest producer of rare earths and supplies approximately 80 percent of US imports.
It is already well known for some time that the United States and China have been in a commercial war. There have been various attacks by part and part and equally, it is necessary to emphasize that they have been really significant. In fact, due to the measures taken, there have been many companies that have been affected.
Now, it has become known that Beijing is preparing to use its domain of rare earths to counterattack in its trade war with Washington. Also, during Wednesday a series of reports of Chinese media, including an editorial in the flagship newspaper of the ruling Communist Party, raised the possibility that the government reduces exports of products that are critical in the sectors of defense, energy, electronics, and automobiles. Thus, China is the world’s largest producer of rare earths and supplies about 80 percent of US imports.
The tension grows and grows
There is no doubt that the threat of building strategic materials increases the tension between the two largest economies in the world before a planned meeting between Presidents Xi Jinping and Donald Trump at the G-20 meeting next month. In this way, it is clear how China is weighing its options after Huawei Technologies Co., on the US blacklist. UU. Cut off the supply of US components you need to make your smartphones and network equipment.
In fact, the CEO of Northern Minerals Ltd., George Bauk, has expressed, “China, as the dominant producer of rare earths, has shown that it can use rare earths as a bargaining chip when it comes to multilateral negotiations”
While some have said that the United States should not underestimate China’s ability to fight in the trade war,
It should be noted that the rare earths have already appeared in the commercial dispute. The Asian country raised tariffs to 25 percent from 10 percent of imports from the sole producer in the United States, while the US. UU They excluded the elements of their own list of prospective tariffs on approximately $ 300 billion of Chinese products that they will point to in their next wave of measures.
Source: Jason Rogers, David Stringer and Martin Ritchie | National Post