What are the six announcements of our country and how did Trump react?
Is the "decisive game" of the Sino-US trade war about to start? my country issued 6 announcements in one day. On the 9th, my country's Ministry of Commerce first issued two announcements on strengthening export control of rare earths related items. It is required to implement export controls on some overseas rare earth related items and rare earth related technologies containing China ingredients.Simply put, all magnets containing Chinese rare-earth components or magnets produced using Chinese rare-earth mining, metallurgy, and magnetization technology, foreign enterprises must obtain our approval when exporting.
To some extent, This announcement by my country can be said to directly break the illusions of the Trump administration, or directly cut off the Trump administration's "back path". Why do you say that?Since China began export controls on rare earth, in order to reduce its dependence on rare earth, in recent years, the United States has stepped up its domestic production of rare earth and adopted alternative materials, while also seeking to establish strategic partnerships with third countries to cooperate in the area of rare earth. Before this, Mongolia, Myanmar, and even Russian President Putin had openly responded to Trump’s proposal for rare earth cooperation, Putin made it clear that Russia is willing to do business with the United States and is ready to reach a mutually beneficial trade agreement. If the United States can lift the sanctions on Russia, the 3.8 million tons of rare earth reserves in Russia can open the door to the United States.
So here's the question, Why did my country choose to take action at this time? A simple analysis shows that there are at least two reasons: First,A new round of China-U.S. trade negotiations will begin, and our country will also create negotiation codes for itself, and gain more advantages in negotiations.In the past, the United States has often done this, and we now consider it to be "in his way." Secondly,China's consecutive announcement is also in response to the latest negative actions of the United States in relation to China, just recently, the United States has expanded the scope of control over Chinese companies and other countries to obtain advanced chips and other products from the United States, the simple point is, as long as our company is included in the so-called "entity list" of the United States, then the company holds more than 50% of the subsidiaries will also be automatically included in the scope of sanctions, even if there is no holding more than 50% of the share, the relevant subsidiaries will be subject to more stringent review.
Faced with this situation, our country is bound to fight back. In this announcement, there is a clause specifically for chip items containing Chinese rare earths. In other words, if the Trump administration wants to suppress our country more extensively in the field of chips, then our country will use rare earths to also make the United States difficult on chips. In addition to the above two announcements, China has also issued 4 announcements, announcing the implementation of export controls on ultra-hard materials related objects, some rare earth equipment and raw materials related objects, some medium-heavy rare earth related objects, lithium batteries and artificial graphic negative materials related objects.
When these six announcements from our country were sent to the White House, What was Trump’s reaction after he saw it?This time Trump's reaction can be said to be somewhat unexpected, there is no imagined boom like the rainbow, and there is no first time to take a tough counter-attack, but rather to China appeared very kind, He said, “I believe we can cope with the possible consequences of China’s new export controls.”According to the previous situation, Trump's reaction is obviously not so. This has actually been shown from the side, that this time our countermeasures are really cut to the United States, Trump does not dare to have too fierce reaction. If Trump takes excessive reaction, this will inevitably have an impact on the subsequent Sino-U.S. trade negotiations, and then lead to our country's further tightening export control measures on rare land, then the Trump administration will really call the pain.