Rare earths an important strategic resource: President Xi

[kankan326]

China not only produces more than it requires, it also processes raw REEs sourced from other nations. Restricting export supply, particularly during the present trade tensions, would quite obviously be in retaliation for US tariffs and other actions. Last time they restricted supply they tried to pretend it was for environmental purposes but were called out on it by the WTO.

Of course China would be within its rights to restrict supply, and yes it would have an effect on US and global manufacturing. Its one of China's trump cards, they probably should use it. But it's not the silver bullet many believe it to be, it will be part of the on-going trade war that isn't going to finish anytime soon.

I wonder if China cuts the rare earth supply to US, would US sue China in WTO? That would be very ridiculous if USA does.

American chip companies can move to China to avoid the rare earth ban. Funny.

 

[patero]

I wonder if China cuts the rare earth supply to US, would US sue China in WTO? That would be very ridiculous if USA does.

American chip companies can move to China to avoid the rare earth ban. Funny.

Moving forward it's hard to say if the WTO is going to have much influence in the trade war. They've proved ineffective in resolving a lot of the trade issues to date.

 

[nahtanbob]

Let them take on the costs of getting their operations off the ground.

Then lower prices again.

what makes you think you won't be hit with sales ban ?

 

[TheTruth]

what makes you think you won't be hit with sales ban ?

The US can issue a sales ban to every single country in the world?

And force its own enterprises to pay a premium vs all global competitors?

LOL