China is poised to use its dominance of rare earth to take the bait in a trade that was against the United States. According to a statement published in Chinese newspapers, China has firmly decided to take a move that would deepen tensions between both economies.
A formal visit by President Xi Jinping to a rare earth plant has given rise to surmise that China will make use of its leading position in a rare earth export industry against the United States to control trade war.
While China has still not given any clarity on its move to restrict rare earth sales to the U.S., Chinese media intensely believes futuristic occurrence. People’s Daily mentioned the U.S.’ intolerable reliance on the rate of earth from China through a strongly worded news headline.
It also raised the question, saying that China could use rare earth as a strong weapon to counterattack the pressure imposed by the U.S. for no reason. Undeniably, the U.S. also wants to purchase products made of rare earth from China to conquer Chinese growth. But the world’s second-largest economy will robustly dismiss the activity.
China advises the U.S. not to misjudge China’s ability to protect its development and interests, the media said.
China has already used its dominance of rare earth exports to impose pressure on previous political arguments.
Earlier in 2010, when a Chinese trawler crashed into two Japanese Guard ships near islands in east China, Beijing slashed rare earth sales to Japan. Industry experts from China said that if the country wheeled the move forward and imposed restrictions on rare earth exports to the U.S., it will mimic Washington’s activity and use national security to provide clarification.