6/10/2025

China must never put the rare earth ban against the USA on the negotiating table as it will be suicidal

China must never put the rare earth ban against the USA on the negotiating table as it will be suicidal. Relaxing the ban will allow a loophole for the USA to stockpile and be able to make more weapons by also negotiating a truce in the trade and tariff battle, to give them the time to continue with weapons production and eventually using such weapons to target China. The targeting of China will be a relentless pursuit of the USA, no matter which party is in the White House. China must be absolutely clear about the USA's intention, even when Xi is no longer around.

Further, China must guard against other USA allies trying to circumvent the ban by using loopholes to resell such rare earths to the USA under the radar. The UK and South Korea had been caught doing so. India is also another target for the USA to source for Chinese rare earth elements. The new vetting system put up by China is going to affect India's intention to set up an AI and EV hub, which China must watch carefully and calculate how much rare earth elements India actually needs.

Trade war or tariff war, China has many cards to play with in the game of retaliation. The USA had tried insidiously to circumvent the trade war by falsifying country of origin of its soya beans as being from Argentina and Brazil which were discovered by the Chinese after analyzing its protein content. The soya bean falsification game is now up, and USA farmers have no more cards to play with. The USA agriculture sector is dying out and food security is going to be a problem for the USA.

The battle is still ongoing in the semiconductor sector, with China catching up in the high-end sector as well. Even Jensen Huang is nervous and is forced to set up a R & D unit in China, knowing this is the only way for Nvidia to fight the battle. The USA can erect more hurdles to keep countries from using Huawei chips, but the Chinese chip market is enough for Huawei to play around.


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1 comment:

  1. AnonymousJune 10, 2025 10:30 am

    I do not think the tariff negotiations in London will achieve any breakthrough, so long as the rare earth issue cannot be resolved. This is the one issue of great consequence for the USA.

    Never take Trump's fake talk about Xi being his great friend, a nice guy and all that, which are just softeners to garner a bigger gain. Did Xi or Putin ever claim that Trump is a great and wonderful guy. Xi and Putin had no necessity to do that and be called hypocrites if things do not turn out as being said by them in praising Trump. Xi and Putin are leaders of integrity, self-respect and not immune to shame. Trump, on the other hand has nothing to lose with his tattered reputation, his six bankruptcies, his moral character and the fact that he is totally immune to shame.

    Nobody gets on well with Trump, not even his Vice Presidents like Mike Pence and now J. D. Vance, not allies, not so-called buddies like Elon Musk, and not his cabinet appointees and sycophants, who must follow his dictates diligently or face dismissal.

    By the way, the USA is reported to be moving 20,000 missiles for countering drones from Ukraine to the Middle East. This is an eye-opening move, either due to shortage in production due to rare earth, or just throwing Zelenskyy to the wolves or should I say under the bus. In the face of escalating Russian drone attacks, this seems a counterproductive move, but it speaks volumes of the desperation that Zelenskyy must be facing. If rare earth elements are affecting the USA military industrial complex, how is NATO Europe faring under the same reasoning.

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