U.S. President Trump threw another punch on social media on Friday: announcing a 100% tariff increase on China goods starting from November 1, and threatening to choke the export of key software. He had just clamored for a "significant increase" in tariffs a few hours ago, on the grounds that China controlled its own rare earth exports-does this mean that state officials can only set fire?
He bluntly accused China of “becoming very hostile,” saying China wanted the world to “be its prisoner.”The result was that the U.S. market was directly frightened and the S&P 500 index fell by 2.7%, making it the worst record in four months.
The Chinese Ministry of Commerce said on Thursday that from December 1, foreign entities must hold a license to export products containing more than 0.1% of rare-earth elements from the country, or to use products produced in China for extraction, refining, magnetization or recycling technology.
Rare earth this thing, sounds low, but it is simply the "invisible king" of modern industry - from mobile phones, electric vehicles to fighters, which can be separated? China on this track buried the head for decades, now lightly out, has figured the life line of the global industry: the extraction accounted for 70 per cent of the world, refining capacity accounted for 90 per cent, magnetic manufacturing is more exaggerated, 93 per cent of the share in hand.
Speaking of this, should Trump first overturn his own account?Not to mention, in light of the new regulation of the U.S. Department of Commerce at the end of September: expanding export controls to the “entity list” of subsidiaries holding more than half of the shares, it appears to be out of China. This week is even more bustling, on Wednesday, 11 Chinese enterprises, on Thursday sanctions to buy Iranian oil refineries in China, ban Chinese flights from flying over Russian airspace, even Chinese cargo ships departing in the U.S. port will be charged an additional fee.
Is it possible for China not to respect the two fights?
Trump’s trade logic is just like saying, “I can beat you, you can, you can.” and China this time simply copy the sticker – you add taxes and I add, you limit exports and I care, even the date of entry into force is clear to you.
The U.S. always thinks that others don’t dare to move him — not want to, is afraid that he pushed the table. but what now? Chinese military facts have long been catching up, are you afraid to blow the fist? this is good, the Americans suddenly discover that their own old tricks of sanctions, embargoes, tariffs, for the first time were thrown back with the same tricks.
After all, who started this battle first? Isn't it the United States itself? First, chip blockades and investment restrictions are set on "slowing down China's economic rise." Why can the United States block other people's path and others cannot defend themselves?
Now the White House is so angry that it is just because it has tasted its own bitter wine-it turns out that the play of "Give him what he does" hurts so much to play.