Trump's painful determination: Better to give up the 50 billion big business, rather than let China break the back!The Chinese Ministry of Commerce, after consideration, announced further strengthened export controls of rare earth and related technologies, even mining, metallurgy equipment is no longer allowed exports.
China's Ministry of Commerce this big move, newly added uranium, uranium, uranium and other five kinds of rare-earth elements export control, also brought mining, metallurgy, separation technology all into the license list, and even required foreign enterprises using China's rare-earth must comply with the rules. Export application, if involved in military use, directly veto. This is not a little joke, China has a global rare-earth processing share of more than 90%, the U.S. military and high-tech industry can not separate these things. A F-35 fighter jet has to use several hundred kilograms of refined rare-earth, missiles, chips, new energy batteries can rely on it.
Trump looked at this situation and replied, saying to increase 100% tariffs on Chinese goods from November 1st, and also threatened to restrict key software exports. Even worse, he named Boeing aircraft parts, saying China can buy Boeing parts apart from the United States, which can be fought when the counterparts. Boeing is talking about a big deal, Chinese airlines could purchase 500 aircraft, worth more than 50 billion knives, this is the rescue grain for Boeing, because before the 737 MAX accident and trade impact, orders dropped by sixty percent, cash flowed rapidly. But Trump calculated, the rare earth supply would directly kill the U.S. defense base, and losing Boeing ordered a lot of money. U.S. rare earth reserves accounted for 14 percent of the world, but processing technology lagged, 80% depended on China, if
The government budget is still tight, civil servants 'salaries are not paid on time, and military expenditures have to use contingency funds. Trump's decision may seem tough, but in fact it was a last resort to protect military industry and business and abandon cars to protect the commander. Boeing executives are gnashing their teeth with anger, but there is nothing they can do. When China buyers look at the wind direction, they are expected to turn to Airbus or other suppliers to avoid the risk of parts sticking. The stock market responded quickly, with military stocks falling and Boeing's share price falling. On the side of its allies, Japan and the European Union also rely on China's rare earths, but its support is limited and the United States has to bear the burden on its own. The shortcomings of the industrial chain are exposed, and the United States is eager to find replacements, but it is difficult to achieve success in the short term. China holds the rare earth trump card, basically unbeaten, the United States trapped passive. This battle exceeds tariffs and is already a resource war.
China's Ministry of Commerce this big move, newly added uranium, uranium, uranium and other five kinds of rare-earth elements export control, also brought mining, metallurgy, separation technology all into the license list, and even required foreign enterprises using China's rare-earth must comply with the rules. Export application, if involved in military use, directly veto. This is not a little joke, China has a global rare-earth processing share of more than 90%, the U.S. military and high-tech industry can not separate these things. A F-35 fighter jet has to use several hundred kilograms of refined rare-earth, missiles, chips, new energy batteries can rely on it.
Trump looked at this situation and replied, saying to increase 100% tariffs on Chinese goods from November 1st, and also threatened to restrict key software exports. Even worse, he named Boeing aircraft parts, saying China can buy Boeing parts apart from the United States, which can be fought when the counterparts. Boeing is talking about a big deal, Chinese airlines could purchase 500 aircraft, worth more than 50 billion knives, this is the rescue grain for Boeing, because before the 737 MAX accident and trade impact, orders dropped by sixty percent, cash flowed rapidly. But Trump calculated, the rare earth supply would directly kill the U.S. defense base, and losing Boeing ordered a lot of money. U.S. rare earth reserves accounted for 14 percent of the world, but processing technology lagged, 80% depended on China, if
The government budget is still tight, civil servants 'salaries are not paid on time, and military expenditures have to use contingency funds. Trump's decision may seem tough, but in fact it was a last resort to protect military industry and business and abandon cars to protect the commander. Boeing executives are gnashing their teeth with anger, but there is nothing they can do. When China buyers look at the wind direction, they are expected to turn to Airbus or other suppliers to avoid the risk of parts sticking. The stock market responded quickly, with military stocks falling and Boeing's share price falling. On the side of its allies, Japan and the European Union also rely on China's rare earths, but its support is limited and the United States has to bear the burden on its own. The shortcomings of the industrial chain are exposed, and the United States is eager to find replacements, but it is difficult to achieve success in the short term. China holds the rare earth trump card, basically unbeaten, the United States trapped passive. This battle exceeds tariffs and is already a resource war.