WASHINGTON (TNND) — From U.S. fighter jets to submarines to cell phones to electric cars, the uses for rare earth minerals are widespread, which means the demand for them is as well.
China’s announcement last week that it would impose severe restrictions on its rare earth minerals beginning Dec. 1 came as a shock, including not allowing them to be used by foreign militaries. As of now, the u-s gets about 70% from China.
In an interview with Fox Business, Treasury Secretary Scott Bessent said, “This is China versus the rest of the world. They have pointed a bazooka at the supply chains and the industrial base of the entire free world and we’re not gonna have it.”
In response, President Donald Trump on Friday issued a threat to add a 100% tariff on China on November 1.
While his tone then shifted with this post pledging all will be fine, the U.S. wants to help China
Still, new port fees just kicked in Tuesday – each country collecting additional money on the other’s vessels – sparking fears of a new chapter in the contentious trade war between the two largest economies in the world.
In an interview with CNBC on Friday, Rep. John Moolenaar, R-Mich., said
They don’t deserve a normal trade relationship status. They are not a developing country. They are leveraging everything they possibly can against the United States and the world order that we have benefited from.
Moolenaar is the Chairman of the House Select Committee on the Chinese Communist Party.
There are growing fears that China will continue to weaponize the markets it controls.
Some China experts argue the U.S. should use its upper hand where it can.
“China has never been more export-dependent in its history. They absolutely cannot replace the U.S. market. Also, we supply some stuff that they can’t get elsewhere, when you add it all up, we’ve got much more leverage than China has,” said Gordon Chang in an interview with The National News Desk on Tuesday.
His recent book is called Plan Red: China’s Project to Destroy America.
“By the metrics, we are far more powerful economy. But the question is, if we believe that we can coexist with China, we’re in trouble because I don’t think we can,” he said.
As of now, Trump is still slated to meet with Chinese President Xi Jinping at a summit in South Korea later this month.
But that too could have been threatened if moves aren’t made by both sides to de-escalate.
