onald Trump may boast from the United Nations podium that he has "ended" seven wars in seven months, but the trade conflict he launched in April by imposing tariffs around the globe is far from over and the instability he created unlikely to disappear soon. The president of the US thought he had found the perfect formula by imposing a regime of generalized extortion on his trading partners. He failed to account for the most powerful and cunning of them all: Xi Jinping's China.
By threatening to impose strict controls on the export of its rare earths, Beijing dashed hopes of a thaw between the two superpowers. With only one month left before their mutually agreed truce expires, tensions have never been so high.
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US and China reignite trade war with focus on rare earths and tariffs
On October 9, China announced restrictions on the use of these minerals, which are essential for digital technology, the automotive industry, energy and defense. China controls 60% of global production and 90% of refining, and can process rare earths at a cost one-third lower than its competitors. Foreign companies could be required to apply for licenses to sell their own products containing these rare earths – even outside China – on the grounds of "protecting national security interests."
