Xi Jinping’s Rare Earth Visit Highlights Weak Spot in U.S. Trade Strategy | WHAT REALLY HAPPENED


Xi Jinping’s Rare Earth Visit Highlights Weak Spot in U.S. Trade Strategy

When Chinese President Xi Jinping unexpectedly toured a rare earth mining facility following the announcement of U.S. sanctions on Huawei, the message was unmistakable: China is prepared to use its domination of raw materials used in virtually all high-tech manufacturing to gain leverage in the trade dispute.

China is the largest supplier of rare earth materials that are used in everything from mobile phones to nuclear power to guided missiles. Xi’s visit highlighted the fact that just as Chinese companies such as Huawei and ZTE require U.S. technology for their products, U.S. technology and national security manufacturers rely on Chinese rare earths.

“Of course it makes sense that Xi would use a rare earth mine to demonstrate their ultimate power in the battle for global domination of high technology manufacturing,” said Michael Silver, chairman and CEO of American Elements, who has called on the Trump administration to develop a strategy to combat Chinese domination of rare earths.

Tags:

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA