Coming back is all threatening tariffs and the United States has no card to fight?

In the morning of October 11,Trump isClaiming to impose a 100% tariff on China's U.S. products, he also threw the "pot" to China, claiming that the upgrading of the tariff war was in response to China's latest rare-earth controls.

In fact, the United States has had small moves ahead: from expanding the list of entities targeting Chinese companies; to imposing huge port charges on Chinese ships; and tariffs on furniture, heavy cargo, medicine and many other fields ... After the Madrid talks, in just over 20 days, the United States continued to add a series of restrictive measures against China, seriously undermining the results of the talks.

Since the United States ignores China's concerns and goodwill, we must also show a precise "combination punch". On October 9th alone, the Ministry of Commerce issued six export control announcements involving rare earths, graphite, etc., directly poking the pain points of the U.S. military industry and high-tech industries; In addition, port construction fees were levied on U.S. ships, and the anti-monopoly of U.S. companies was intensively investigated. Nvidia, Google, DuPont, etc. were on the list, and Qualcomm was confirmed to have "clear facts and conclusive evidence." Nearly 10 counter-measures within 48 hours made American public opinion exclaim: China has entered a comprehensive counter-attack mode after the National Day!

Chinese flag and American flag data map

The unilateral bullying has made the United States think that it can step up, so that after our set of countermeasures, Trump "broke the defense." More embarrassingly, his tariff blackmail, not only ignores the US government is in the shutdown state, but also the US stock market "fear of heart disease." US trade representative Griller said in his mouth, such as "tariff war is really necessary", the United States is ready. but also stressed that the United States still wants to establish a "balanced trade relationship" with China. This "wants to fight and dares not to fight" retreat attitude completely exposed the United States' insufficiency. Challenging, being attacked, acknowledged, challenging again, the United States has fallen into the vicious cycle of its own manufacturing, and China's response to early

Further reading:

Media: China's major upgrading of rare-earth controls laid down new pieces at the Sino-U.S. negotiating table

On October 9, China's Ministry of Commerce issued two announcements on strengthening export controls on rare earth-related items, which triggered heated discussions in foreign media. The British "Financial Times" pointed out that China's new restrictions are similar to the United States' "Foreign Direct Products Rules" (FDPR) export control system, which is the rule used by the United States to prevent third countries from exporting semiconductor-related products to China.

Bloomberg commented that as the United States and China are about to sit down for face-to-face negotiations again, China has demonstrated its trade influence.

Chinese flag and American flag data map

In addition to issuing two announcements on strengthening export controls on rare earth-related items, China also announced several announcements that not only included several new rare earth elements and dozens of rare earth processing equipment on the export control list, but also involved superhard materials, lithium batteries and artificial graphic negative materials, etc. The British media believes that these measures are important for China's trade talks with the United States and will help strengthen China's influence.

The Wall Street Journal of the United States analyzed that as the United States and Western countries strive to establish a rare earth industrial chain to reduce their dependence on China, China's latest measures have further expanded its control over the rare earth supply chain.

According to the new regulations announced by China's Ministry of Commerce on the 9th, China will implement export controls on some overseas rare earth-related items and rare earth-related technologies containing Chinese ingredients. According to the Financial Times, this means that all magnets that contain Chinese rare earth components or are produced by Chinese rare earth mining, smelting and magnetisation technology need to be approved by foreign companies when exporting them.

The Ministry of Commerce said in the announcement that some overseas organizations and individuals were found to "directly or after processing or transferring rare-earth controlled objects originating in China to relevant organizations and individuals, directly or indirectly for sensitive fields such as military", in order to safeguard China's national security and interests and fulfill international obligations such as non-proliferation, China "in accordance with the law to implement control of some foreign rare-earth related objects containing Chinese components".

The new regulations coverage contains 0.1% or more of China's rare earth components, foreign-made rare earth magnets and some semiconductor materials, as well as the items listed using rare earth mining, metallurgy separation, metal metallurgy, magnetic materials manufacturing, rare earth secondary resource recycling and recycling related technologies produced abroad, these items will apply from December 1; for the items listed originated in China, the new rules will be implemented immediately.

In addition, China "does not permit most export licenses for military purposes in principle". China will also "approve on a case-by-case basis" export applications involving the research and development of artificial intelligence with potential military uses.

China's Rare-Earth Plate Stock Price Increases Dramatically

After the announcement of the news, the price of China's rare earth plates has risen significantly. On the same day, Antai's technological growth stopped, the long-term magnetic growth of gold grew by more than 12%, the rise in rare earth in the north exceeded 8%, and China's rare earth, Xiamen and other stocks have reached different degrees of increase.

Rare earth metals and magnets are the core materials for high-tech products such as smartphones, electric vehicles, and fighter jets. China has long realized its importance and spent decades establishing a dominant position in global rare earth mining and processing. Data shows that China controls about 70% of the world's rare earth mining, 90% of separation and processing, and 93% of magnet manufacturing.

In April this year, after the Trump administration announced that it would impose additional tariffs on China, China immediately included rare earth items in the scope of export controls. Foreign media generally believe that China's move to implement export controls on rare earths has dealt a blow to the U.S. auto supply chain and forced the Trump administration to the negotiating table. Since then, the rare earth issue has repeatedly appeared in several rounds of Sino-US trade negotiations, and the timing of the new rules has coincided with the speculated time of the formal meeting between the leaders of the two countries.

"The timing is very strategic," analyzed Gracelin Baskaran, an expert on key mineral issues at the Center for Strategic and International Studies (CSIS), a U.S. think tank."China has just put down a new batch of chess pieces on the negotiating table."

Wang Dan, director of the Eurasian Group¡¯s China Region, said the move represents a ¡°significant upgrade¡± of China¡¯s rare-earth export control system, expanding its scope from raw materials to technology and intellectual property rights, which should strengthen China¡¯s influence in negotiations with the United States, ¡°these restrictions have little impact on Chinese production but will deepen foreign reliance on China¡¯s expertise.¡±

Hong Kong's South China Morning Post said that in order to reduce its dependence on China's rare earths, the United States has increased its efforts to increase domestic production and adopt alternative materials. At the same time, it is also seeking to establish strategic partnerships with third countries, and China's new announcement may hinder these efforts of the United States.

Baskalan commented that China¡¯s new regulations would clearly challenge the U.S. and its allies¡¯ plans to push their own industrial chain building, while also preventing any potential ¡°technological capacity leakage¡± in the course of China¡¯s cooperation with foreign counterparts.

Bloomberg believes that the announcement includes provisions to review chip items containing Chinese rare earths, which seems to be targeting the U.S. semiconductor industry. Reuters also pointed out that the day before China issued a new announcement, U.S. lawmakers clamored for a broader ban on the export of chip manufacturing equipment to China.

Data map of "major upgrade" of China's rare earth export control system

Christopher Beddor, deputy director of the China Research Department of Jiafulong, said that the implicit threat is that China may counter foreign controls on chip exports to China by restricting the export of rare earths to chip manufacturers.

Wade Senti, president of Advanced Magnet Lab Inc., said that it is really concerned that those ¡°shells and heads¡± that any company that purchases equipment from China may face supply disruptions and subsequent maintenance and service requests may not be answered.

In addition to the above two announcements, the Ministry of Commerce of China and the General Administration of Customs issued four consecutive announcements on 9th, announcing the implementation of export controls on ultra-hard materials related objects, some rare earth equipment and original auxiliary materials related objects, some medium-heavy rare earth related objects, lithium batteries and artificial graphic negative materials related objects.

Kim Dudou, a trading compliance partner at the law firm, told the Financial Times that China's new rules are closely related to the U.S. export control system and are "a systematic and comprehensive response to the United States."

Regarding China's strengthening of export controls, a spokesman for the Ministry of Commerce responded that in accordance with the Export Control Law of the People's Republic of China and other relevant laws and regulations, on October 9, the Ministry of Commerce and the General Administration of Customs issued an announcement on the implementation of export control measures for five medium and heavy rare earths, lithium batteries and artificial graphite anode materials related items such as holmium, which will be officially implemented on November 8. Earlier, we have informed relevant countries and regions.

The spokesman stressed that the related items listed here have obvious military and civilian dual-use properties, China implemented export control measures in accordance with the law, in accordance with international practice, better safeguarded national security and interests, better fulfilled international obligations such as anti-proliferation.The Chinese government is willing to work with other countries to safeguard the stability of the global supply chain, the relevant measures are not aimed at any country and region, for legal compliance export applications, the Chinese side will be allowed after review.At the same time, China is willing to communicate with relevant parties on export control policy and practice, jointly promote and facilitate compliance trade through bilateral export control dialogue mechanism.