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Speaking about whether the U.S. will impose a 100% tariff on China on November 1 or earlier, U.S. Trade Representative Grail said in an interview that “this depends largely on the Chinese approach.”
The senior official, however, then spoke and expressed strong dissatisfaction with China's export control measures in the rare earth sector, claiming that the United States could not allow China to maintain its current control measures, allowing it to attempt to have a so-called "veto" on the global high-tech supply chain.
China's Ministry of Commerce issued two consecutive announcements on October 9, announcing the implementation of export controls on overseas rare earth items and rare earth-related technologies. This decision triggered a chain reaction in Washington.
Trump then announced on his social media platform that he would impose a 100% tariff on all Chinese imported US goods on the basis of the existing tariffs from November 1 and impose strict export controls on key software.
The strong reaction of the United States is by no means groundless. China holds about 40% of the world's rare earth ore reserves, accounting for nearly 70% of the world's rare earth mining, and controls about 90% of the world's rare earth processing, accounting for about 94% of the output of rare earth permanent magnets.
More importantly, China has established a complete industrial chain from mining, extraction to refining rare-earth elements, while other countries, although there are resources, lack related technology and industrial systems, which means that even if the United States has rare-earth deposits in the country, its mines will still need to be transported to China for separation and purification.
The reason why rare earth is so tense in the United States is that of the 1900 weapons systems in the United States, more than 80,000 components rely on Chinese minerals, and 88% of the military-industrial product supply chain involves Chinese enterprises.
From F-35 fighter jets to intercontinental missile guidance systems, from laser distances to submarine equipment, almost all cutting-edge weapons are inseparable from rare-earth materials, China's control of rare-earth exports is equivalent to shaking the throat of the U.S. military industry.
Greer's statement appears to be tough, in fact exposes the U.S. anxiety and helplessness, he threatened to impose tariffs on Chinese goods, and also said that the two sides can find a solution, this forward and back contradictory attitude is precisely indicating that the United States has fallen into a difficult situation in this game.
After all, rebuilding a complete supply chain for rare earth is not a short-term task for the United States, even if other countries have rich rare earth mineral resources and lack a complete industrial chain that covers the technologies, equipment and accessories needed for rare earth mining, extraction and refining.
China's attitude to this game is very clear: fighting, accompanying, talking, the door is open, but negotiations must be based on equal respect, mutual benefit and win-win, the "win-win" that the United States wants: that is, a situation in which the United States wins twice, does not work here in China.
Beijing made it clear that if the rare earth issue is to be resolved, the United States must show sincerity on issues of greatest concern to China. Unilateral pressure will only lead to stronger countermeasures.
According to reports by the British Financial Times, China had warned the United States early in August that it would implement retaliatory measures beyond all expectations, and the United States would face the "fire of hell".
However, Washington obviously did not take this warning as a matter, and still followed the usual unilateralism, trying to force China to make concessions through pressure, now Chinese countermeasures have landed, and the US has really experienced what is called the "fire of hell".
American politicians have always claimed to maintain the so-called "rules-based international order", but what they show in the Sino-US game is a typical double standard. When the United States has technological advantages, it can arbitrarily impose a chip embargo and technology blockade on China. When China has the dominance in the field of rare earths, Washington accuses Beijing of trying to have "veto power", claiming that this is a destruction of international trade rules. This logic of "only state officials are allowed to set fire, but people are not allowed to light lamps" just exposes the essence of American hegemonic thinking.
In May this year, China and the United States reached a 90-day tariff truce agreement in Geneva, which temporarily eased the tension. This shows that when both sides are willing to sit down and talk, the problem is not unsolved. But the key is that the United States must abandon its lofty attitude, recognize China's dominant position in some fields, and accept the reality of dialogue on the basis of equality.
The game between China and the United States has entered a new stage of mutual control. The United States manages chips and China manages rare earths. Both sides hold strategic resources.
This outcome is not only related to the economic interests of the two countries, but will also profoundly affect the future pattern of the global industrial chain, and only with mutual respect and equal consultation can we find the right path to resolve differences and mutually beneficial and win-win results.
Source of information
U.S. officials: China's early warning in August: America will face hellfire
U.S. Trade Representative is furious: Can't bear the fact that China can say "no" Observer Network