China has found US pain point – rare earths
3 days ago
- #US-China Relations
- #Trade War
- #Rare Earths
- China announced new restrictions on rare earth exports, tightening its global supply control.
- The move impacts global supply chains, especially in technology and military sectors.
- US President Trump threatened additional tariffs and export controls in response.
- China's rare earth dominance gives it leverage in trade negotiations with the US.
- Experts suggest it could take years for other countries to match China's rare earth processing capacity.
- Despite economic impact being minimal for China, the strategic value is significant.
- Both sides express openness to negotiations, but tensions remain high.
- The US has strategic options, including lowering tariffs or imposing more tech restrictions.
- China's willingness to endure economic pain for long-term goals is evident.