Just by crippling ASML, the lithography machine manufacturer, with its rare earth deprivation will also cripple all the other chipmakers in Arizona and Japan eventually. Sure, ASML and other downstream chipmakers may have stocks of rare earth elements to tide them over for the time being, but in this cut-throat world of cost-saving, keeping only 'just in time' stocks for about one or two weeks or even shorter is the norm. What happens when those stocks run out is a moot question.
Like automakers in USA, Europe and Japan, cutting off Nexperia chips by China saw Honda, Nissan and VW cutting production and suffering massive losses. They had exhausted their Nexperia supplied chips and cannot move forward with their production. They had everything necessary to make a car, except just the Nexperia chips alone, which stalled all the production. Some may resort to black market deals, but China will make sure that the loophole will close, just like the attempts to smuggle soya beans using fake country of origin being discovered and closed up. South Korea and India were also reselling rare earth sourced from China and are now suffering the consequences in their own industry.
Anonymous
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Before learning to walk, the West had been talking about running a marathon, exploring mining rare earth under the sea and in space. Really laughable! Rare earth dirt is so abundant everywhere, why float such nonsensical ideas that cannot make sense.
Mongolia had plenty of rare earths that the USA had bulging green eyes to exploit, but due to its enclosed position without seaports, the idea had to be abandoned. China and Russia would not allow the use of their ports to be used by Mongolia, knowing they will be helping the USA instead.
Now, think about mining rare earth in space. The cost would be astronomical if even possible. Stupid idea from stupid people playing stupid games and getting stupid prizes is all I can think of.
The USA is looking for trouble trying to seize vessels operated by China and Iran, hoping to find something of technological value to steal. China can easily send its weapons sold to Iran by rail now. No sweat! The USA is now placing sanctions on 29 Iranian vessels. As I said earlier, those living in glass houses should not try to throw stones. Iran can retaliate very easily, targeting ships operated by the USA and Israel around the Middle East.
The USA tried to target China's shipbuilding industry by raising levies on Chinese built or operated ships and China did the same to them. Chinese ships now avoid calling at USA ports and instead went to European ports. After all, China is in no mood to continue to trade with the USA. Is that a problem? Despite all the news about port fees being imposed, China is still doing a roaring trade with the rest of the world and chalking up a trade surplus of more than US$1 trillion. That must be agonizing news to swallow for the USA.
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