China has found Trump’s pain point – rare earths

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1. China’s recent export controls on rare earth minerals have escalated tensions with the U.S., as foreign companies must now secure Chinese government approval for exports containing even tiny amounts. This move enhances China’s dominance in a sector it controls, supplying approximately 70% of the world’s rare earths critical for technologies like electric vehicles and military equipment. In retaliation, U.S. President Donald Trump has threatened a 100% tariff on Chinese goods, complicating ongoing negotiations. The timing of these controls, just ahead of scheduled talks between Trump and Chinese President Xi Jinping, may give China significant leverage in the discussions. This situation highlights the vulnerability of U.S. industries reliant on rare earths and raises concerns about potential disruptions to supply chains and technological capabilities.

2. God willing, this will end badly for Trump

3. Other countries have rare earth deposits besides China, including the USA. Those other countries have restrictive environmental laws that make mining those deposits unprofitable.

   If China limits its exports, it would drive up the price, possibly to the point where other countries could afford to mine rare earths using the expensive environmental protection methods required by the law.

   > A 2019 US Army report highlights a central issue driving rare-earth pollution in China: “China is less burdened with environmental or labor regulatory requirements that can greatly increase costs incurred in mining and manufacturing rare-earth products.”

   https://earth.org/rare-earth-mining-has-devastated-chinas-environment/

4. Trade wars are fun till someone controls 80 percent of the minerals you need. Thats checkmate energy.

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