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China ready to hit back in U.S. trade war with rare earths

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i would say if the U.S start this trade war China can easily hit back while they are laughing

1 ( +9 / -8 )

Should be interesting. Some American companies would take a big hit for sure.

8 ( +10 / -2 )

An opportunity for greater Japan-US ties thanks to newly discovered rare minerals in Japanese waters. Japan should strike now while the iron is hot.

-3 ( +6 / -9 )

All it will lead to is Companies that use these so called "rare earths" seeking alternatives, there was a comment just last week by South American producers of lithium that with all the new mines coming online that prices will drop as supply increases. Short term China may hold the cards BUT in the long run alternatives will be found.

8 ( +10 / -2 )

America deserve the Chinese action. A big bully with a loud mouth, that is America.

No bullies needed, only correct trading ways.

-4 ( +11 / -15 )

i would say if the U.S start this trade war China can easily hit back while they are laughing

As we can it will, it hurts them just as much as it hurts us.

https://www.cnbc.com/2019/05/12/how-trumps-trade-war-threatens-chinas-ambition-to-lead-the-world-in-technology.html

-7 ( +3 / -10 )

While Donald Trump is certainly exacerbating this situation, this is the result of a long-standing failure in US leadership to maintain expertise in several critical industries. China has been planning this monopoly for over 15 years, neither Bush or Obama did anything to stop them and this is the natural result.

6 ( +8 / -2 )

All it will lead to is Companies that use these so called "rare earths" seeking alternatives, there was a comment just last week by South American producers of lithium that with all the new mines coming online that prices will drop as supply increases. Short term China may hold the cards BUT in the long run alternatives will be found.

Keep in mind that China has been increasing its monopoly on the whole vertical market, its not just a problem of mining the materials, but also processing them. That kind of expertise and those facilities can take years to come up full speed. The West let China monopolize this market and now is paying the price for their myopia.

5 ( +6 / -1 )

To give some idea of the reserves. Brazil and Vietnam each seem to have about half China's reserves.

There are probably more, but some countries do not want the attendant pollution involved.

https://www.statista.com/statistics/277268/rare-earth-reserves-by-country/

5 ( +6 / -1 )

So Trumps best friend Abi wouldn’t happen to have a several centuries supply of rare earths, would he?

https://www.sciencealert.com/japan-discovered-a-rare-earth-mineral-deposit-that-can-supply-the-world-for-centuries

Well wow wow look at that.

-2 ( +5 / -7 )

Bring it on.

-3 ( +4 / -7 )

Oh my...

Japan looks to replace China as the primary source of critical metals

https://bigthink.com/technology-innovation/japan-rare-earth?rebelltitem=1#rebelltitem1

-1 ( +5 / -6 )

So Trumps best friend Abi wouldn’t happen to have a several centuries supply of rare earths, would he?

Except its at the bottom of the Pacific Ocean and no one has any idea how to attract the minerals. The atoll is more than 2,000 Km from Tokyo.

4 ( +6 / -2 )

When trade stops, war start.

-5 ( +0 / -5 )

Trumpsters have no idea on how things work they think this find can be dug up tomorrow.

-1 ( +6 / -7 )

China showed it's hand nearly a decade ago when the Senkaku dispute flared. All western nations have been lining up alternative sources since. While it may disrupt immediate supply/prices, it's not going to bring the U.S. to its knees, if that's what China is shooting for.

0 ( +5 / -5 )

Another massive miscalculation by the current occupant of the White House ... a little bit of knowledge is a very dangerous thing.

2 ( +6 / -4 )

@Nanda

Brazil and Vietnam each seem to have about half China's reserves.

Interesting points. But it's not just about where the reserves are. It's about who has the mining rights. China plays the long game, and is buying up global infrastructure, everything from European ports to African natural resources. White House tariffmongers have a time horizon of a couple of years and eventually will be outplayed. I don't particularly like this scenario, but in my view, the writing's on the wall. Chinese positions on human rights and intellectual property notwithstanding, the US approach to solving these trade problems makes me despair.

4 ( +5 / -1 )

Japan looks to replace China as the primary source of critical metals

will never happen, mining 3 miles under the ocean will never be as cost effective as land based rare earth mining. China has the largest reserves in the world of rare earths by far and are the cheapest in mining them. that won't change anytime soon. No Chinese rare earth to American companies means more expensive American electronics, computers, Iphones etc. President XI doesnt need to worry about reelection. See trade wars are easy to win.

5 ( +7 / -2 )

 it's not going to bring the U.S. to its knees, if that's what China is shooting for.

I think Chinese are smart enough to realise that goal isnt likely, , US exports account for about 3~4% of its economy so while it will hurt in the short term its hardly going to bring bring China to its knees, they play the long game. Xi is president for life just has to wait until a POTUS with sanity comes along.

2 ( +4 / -2 )

Oh my...

Japan looks to replace China as the primary source of critical metals

Oh my...

Ignorance is revealing its head.

China has that market cornered...97%. Japan discovering them and Japan producing and supplying them at the scale of that of China are two different things. Then you throw in time. What are buyers supposed to do in the mean time, just sit and wait?

That said, China is going to lose that part of the market share as it did back in 2010-2012 when Ishihara made a move over the Senkaku Islands and China played their Rare Earth Metal card. Japan in 2012 and the US in the near future will find alternative sources.

It’s the same with Huawei and Trump restricting the sale of semiconductor chips to Huawei by US companies; China will find alternatives and in the long run will produce their own chips with no choice, but US companies will lose that market share.

If we look at cotton, we can also see the adverse effects of restricting commodities. With the invention of the cotton gin, cotton replaced tobacco as the primary cash crop of the South. The US produced the majority of the World’s supply of cotton. The US (the South) restricted cotton exports to France and Great Britain and thought the embargo would recruit the two European powers to come to their aid in the Civil War. Britain turned to India and France to Egypt or both to both. The South never recovered that market share.

Think twice China. Your projects and plans are long term with dates and goals of 2025 and 2050. The US doesn’t think in quarter centuries but in terms of four year terms of the presidency and its elections. Trump will be long gone by 2024 if not next year but you will lose a great customer for decades after if you choose to go this route.

And don’t say I didn’t warn you.

3 ( +3 / -0 )

"Trade wars are easy to win." Thus spake the great orange fool.

0 ( +4 / -4 )

Refining rear earth is very toxic and environmentally damaging. Perhaps, it would be the catalyst to start searching for replacement.

2 ( +2 / -0 )

Think twice China. Your projects and plans are long term with dates and goals of 2025 and 2050. The US doesn’t think in quarter centuries but in terms of four year terms of the presidency and its elections. Trump will be long gone by 2024 if not next year but you will lose a great customer for decades after if you choose to go this route. And don’t say I didn’t warn you.

Actually Trump will be president until 2025, and he's not just thinking of his second term, he's thinking of what is best for Americans in the long term, way beyond his presidency.

-1 ( +4 / -5 )

"Trade wars are easy to win." Thus spake the great orange fool.

Watch the "orange fool" get re-elected.

-2 ( +5 / -7 )

This is dispicable behaviour from Communists. If they think this will scare the likes of USA and Japan and all other freedom-loving nations, they better think again. Japan is working around the clock to source rare metals in their undersea EEZ, and the exploration is ticking along nicely. Your not needed, Communist PRC!

-3 ( +4 / -7 )

Actually Trump will be president until 2025, and he's not just thinking of his second term, he's thinking of what is best for Americans in the long term, way beyond his presidency.

thinking what is best doesn't mean it is best, Trump stops when his presidency stops, the next POTUS can then get busy signing away all the damage he's done. Since none of his signature policies have come to fruition his legacy will be easier to erase than prior POTUS.

2 ( +5 / -3 )

thinking what is best doesn't mean it is best, Trump stops when his presidency stops, the next POTUS can then get busy signing away all the damage he's done. Since none of his signature policies have come to fruition his legacy will be easier to erase than prior POTUS.

I predict nearly everything he's wiped out, will be brought back, and the crap be brought in, will be tossed to the curb.

You know, like he did when he came in. That's the new status quo, right?

6 ( +6 / -0 )

This entire mess allowing china to become what it is, was perpetuated by the USA; when Richard Nixon gave them "Favored Nation Trading Status". We're all to blame for this, relying on their cheap made (prison labor) garbage. How do you think they can afford to undercut EVERYONE in the world ?

Enjoy.

2 ( +3 / -1 )

All it will lead to is Companies that use these so called "rare earths" seeking alternatives,

You must have meant alternative sources because the rest of your post contradicts this part.

there was a comment just last week by South American producers of lithium that with all the new mines coming online that prices will drop as supply increases. Short term China may hold the cards BUT in the long run alternatives will be found.

1 ( +1 / -0 )

"Trade wars are easy to win." Thus spake the great orange fool.

That statement might turn out to trump (heh) "Mission Accomplished".

0 ( +0 / -0 )

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