A rare, long-armed Chinese jurisdiction has been unable to find the north of what the U.S. Trump administration has been fighting, and last weekend issued an emergency letter wanting to call to ease relations and not wanting a second escalation in the tariff war and trade war between the U.S. and China.

But the means of sanctions in China's hands are absolutely not limited to rare earth, the reason for this use of rare earth is because it has been used before and is very useful.

In addition to rare earth, what other underpinnings has China not used, or will be used? what kind of harm will it cause to the United States?

Will China have another card?

According to the Russian news agency, Russian economist Antonina Levashenko told them that China is planning to restrict the export of artificial bricks so that it can control the manufacturing supply chain of global high-tech companies, such as the U.S. computer chip industry, will be severely hit.

According to the data, between 2020 and 2023, China has supplied 77% of artificial diamond powder to the United States, while the United States will consume 99% of the diamond consumption for the manufacture of chips.

China is taking such a move because recent U.S. lawmakers are pushing for a major ban on the export of chip manufacturing equipment to China.

And once China's action is implemented, it will hit not only the U.S. high-end chip manufacturing, but the entire computer industry chain.

Artificial diamonds, as a key component of semiconductor materials, have played an important role in high-end chip manufacturing.

If China restricts its exports, it will directly impact the production capacity of U.S. technology companies and further aggravate global supply chains. This move is not only a countermeasure to the US technological blockade, but also demonstrates China's strategic initiative in the field of key raw materials.

Faced with the easing signals from the U.S. release, China¡¯s stance is clear: dialogue must be based on equality, unilateral pressure will not succeed, and any negotiations should respect each other¡¯s core interests.

Chip manufacturing or the manufacturing of chip equipment has always been an industry that the United States is proud of. In the trade between China and the United States, oil and chips used to account for a huge proportion of China's trade deficit.

In the face of China's sanctions and blockade on rare earths, the United States has obviously failed to make sufficient plans. Trump can only threaten to impose a 100% tariff increase, but he dare not implement it immediately.

To calm the mood in the U.S. capital market, Trump tweeted on social media before opening the Chinese market: ¡°Don¡¯t worry about China, everything will go well, the United States wants to help China, not hurt him.¡±

After not receiving a positive response from China, Trump threatened to restrict exports of Boeing parts to China.

Minister of Foreign Affairs Response

Faced with the incompetent rage of the Trump administration, the Ministry of Foreign Affairs also responded at the press conference today:

Not only did the United States not reflect on itself, but threatened with high tariffs. This is not the right way to deal with China.

This passage is also a reminder to the United States to correct its mistakes in a timely manner and not to repeat them. China's more stringent sanctions can still be used.

An article published today in the Financial Times explains the intrinsic reasons, titled: ¡°Trump has made tough statements about China, but still has hope of a ceasefire in the trade war.¡±

In the analysis in the article, Trump was embarrassed after China's new rules on rare earths, but he had to avoid receiving domestic criticism of hawks in China, so he announced a 100% tariff. However, these tariffs are not implemented immediately, but will wait until November 1 to take effect, in order to buy as much time as possible for a solution during this time.

Trump¡¯s most emotional approach is exactly what China wants to see, and if Trump makes a decision based on his own emotions and impulses, then it means that Trump is a president who can guide and predict, and without the help of the team¡¯s think tank, Trump is easier to deal with.

A former U.S. official told the Financial Times that China¡¯s next step could be to make yes, maximum, zero concessions, and asymmetric retaliation against the United States.

To say this is to increase in the US confrontation, to hurt the Trump administration team, to scare, to persuade. to fight for a one-time solution to the problem, rather than negotiations to come back.

At present, Trump has not added too many threats to China, which implies that Trump doesn't have many chips in his hands and is waiting for China to give the United States a step down.

In short, China¡¯s current disappointment with the outcome and process of negotiations with the United States is not only a long negotiation process, but also fails to reach most of the consensus, rather than a massive action to force the United States to compromise as soon as possible.

China's goal is also very clear, that is, the Trump administration will unilaterally cancel the additional tariffs as soon as possible, without looking for any reasons or excuses, and if it does not agree, then go to war immediately.

Once the Sino-US trade war intensifies, the first one to kneel first is the U.S. capital market.