It's been the second week since the U.S. government is in a shutdown, and Bescent has issued another warning, losing more than $15 billion a day!

At the same time, the new round of China-U.S. game is also becoming more and more intense, from rare-earth control to tariff imposition, the two sides are unable to relinquish each other.

US government shut down for more than two weeks

Today's America, In the past two weeks, government shutdowns have stalled, projects have been shut down, and a large number of employees have been forced to stop paying. U.S. Treasury Secretary Bessent said the shutdowns have caused a loss of about $15 billion per day to the US economy.Every day, an economic activity in a small and medium-sized city is paralyzed.

Kevin Hassett, director of the White House National Economic Council, also expressed concern, Behind the government shutdowns, countless companies' orders are delayed, consumer confidence is broken, and investors are hesitant.

The snow is worse, The U.S. Senate failed to advance the Republican provisional funding bill in the October 15 vote, which completely exposed the U.S. political differences and difficulties, but ultimately hurt only the U.S. economy.

Besson tried to blow the market. He believes that the wave of investment in the US economy is sustainable and just beginning, and the Republican tax law incentives and Trump tariff measures will maintain the investment boom and promote sustained economic growth.

However, But the reality is cruel, the government shutdown has caused a shock to the real economy, enterprises do not dare to expand easily, consumers do not dare to consume, and the heat of economic activity rapidly decreases.

What's more serious is that, Recently, there has been a new round of economic and trade conflicts between China and the United States. In late September, the U.S. Department of Commerce issued new penetrating regulations on export controls, followed by China's strengthening of rare earth export controls. On October 11th, Trump announced that he would impose tariffs of up to 100% on some Chinese goods, and China quickly countered them.

As the situation continues to deteriorate, CNN analysis pointed out that Trump is the initiator of the current tense economic and trade situation.

The culprit is Trump.

According to CNN, Many China experts and US analysts pointed out that if the Trump administration had not further strengthened export restrictions on Chinese companies in late September and included thousands of China companies in the "entity list," the current tensions in the Sino-US trade field could have been effectively controlled.

Although Trump recently made a public statement, expressing "shock" at China's measures to tighten rare earth export controls and accusing China of "taking hostile actions," However, from China's standpoint, it is the continuous escalation of sanctions imposed by the United States on Chinese enterprises that leads to the continued tension in bilateral relations. No blame for others.

Wu Zhiber, dean of the Institute for International Issues of the University of Fudan, was more straightforward. Since Trump launched the tariff war, China and the United States have been constantly dealing, and if the U.S. side still does not understand what consequences a small move to China will cause, it is that the people in the Trump team are completely incompetent.

Now, the outside world is worried about whether China and the United States still have the will to sit down and negotiate. Besent also said that the US-China leaders who will attend the APEC summit at the end of the month may not meet, but he also said that he may travel to Asia before the summit to meet with Chinese Deputy Prime Minister Ho Chi Minh.

However, there are also opinions that, China¡¯s tightened controls on rare earth are a powerful measure to hit the U.S. automotive supply chain, which will also force Trump back to the negotiating table.

China occupies a leading position in the global supply chain of rare-earth industries, controlling about 70% of global rare-earth mining, 90% of rare-earth separation and processing capacity, and up to 93% of rare-earth magnet manufacturing market share.China's Ministry of Commerce's new regulations expand the scope of controlled rare earth elements, including production technologies and overseas uses. This move is like pinching the "seven inches" of the U.S. auto supply chain.

Not only that, Some experts believe that China's strengthening of rare earth export control is a reasonable and reciprocal response to Trump's actions. Similar to the United States '"Foreign Direct Products Rules" export control system, China is doing the same.

Today, the United States is facing government stagnation and economic downturn, and Trump is also facing political pressure at home.Given China¡¯s dominance in rare-earth areas, the United States will still depend on China in the short term.

In the future, the direction of Sino-US economic and trade relations depends on whether the United States can take practical actions to improve relations and stop unwarranted restrictive measures. China will also conduct rational communication and negotiations with the United States on the basis of safeguarding its own interests and international common security.

We are all well aware of how important the relationship between China and the United States is, which has a profound impact on the global economy and the stability of the supply chain. The current relationship between the two countries has brought a lot of uncertainty to the global market. Both sides should realize that cooperation and exchanges are the right way to achieve common development and global prosperity.

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