- Beijing “Seriously Considering” Rare-Earth Export Ban
by Tyler Durden, https://www.zerohedge.com/
Following what was a mostly quiet holiday weekend for trade-war-related rhetoric (other than a dollop of trade-deal optimism offer by President Trump, little was said by either side), Beijing has started the holiday-shortened week by reiterating threats to embrace what we have described as a ‘nuclear’ option: restricting exports of rare earth metals to the US.
Global Times editor Hu Xijin, who has emerged as one of the most influential Communist Party mouthpieces since President Trump increased tariffs on $200 billion in Chinese goods, tweeted that China is “seriously considering restricting rare earths exports to the US.”
There are signs that these warnings should be taken seriously: One week ago, President Xi and Vice Premier Liu He, China’s top trade negotiator, visited a rare earth metals mine in Jiangxi province. Rare earths, which are vital for the manufacture of everything from microchips to batteries, to LED displays to night-vision goggles, have been excluded from US tariffs.