Xi Jinping

The China-US trade war has rekindled. Mainland scholar Jin Canrong regards rare piles of earth, US Treasury bonds and the three major trump cards in the United States. The General Secretary of the CPC Central Committee and President Xi Jinping visited the rare earth enterprises on Monday (20th) and was interpreted by the outside world as a release. The signals related to the Sino-US trade war.

Although the Chinese Ministry of Foreign Affairs has always stressed that there is no necessary connection between the two things, the public version of the “People’s Daily” overseas version of the public number “Xiake Island” issued a document saying why Xi Jinping was accused of intending to play this trump card, because China has the United States in the field of rare earth obvious advantage.

Chinese folk opinion and overseas media have linked Xi Jinping’s inspections to the Sino-US trade war. He believes that China will use this trump card to deal with the all-round suppression of the United States, although the Chinese Foreign Ministry has always stressed that there is no necessary connection between the two. Foreign Ministry spokesperson Lu Yi said on Monday that it is normal for Chinese leaders to investigate and investigate relevant industrial policies in China. I hope that you will not make too many associations.

According to the article of the Knight Island, because the rare earth is an indispensable strategic resource, the US military, which relies heavily on high-end weapons such as warplanes, missiles, radars, and submarines, attaches great importance to this. The US military has recently been continually representing the potential crisis that China may break the supply of the US military and called for early preparations.

The article continues, as China needs US wafers, the United States is also inseparable from China’s rare earth. Although the United States has a considerable reserves of 1.4 million tons of rare piles of earth, the data for 2012 show that in the country’s more than 400 rare earth listed companies, there are no more than five production stages, and only two of them have reached normal production, one of which is still After the bankruptcy, it was revived with the help of Chinese financing, and the other lost its business license in the short term.

US report: Rebuilding domestic rare earth supply chain takes 15 years

The article emphasizes that, like the wafer industry, the rare earth industry cannot be established very quickly. The 2016 US government report estimates that it may take 15 years for the United States to rebuild its domestic rare earth supply chain. In contrast, although there has been much chaos, China’s rare earth industry has great advantages. According to the article, China’s rare earth resource reserves rank first in the world, and it is 5 to 10 years ahead of other countries in mining and separation technology.

The article further pointed out that although Beijing explicitly denied Xi Jinping’s inspection of rare piles of earth and the Sino-US trade war, the actual impact is illusory. As long as China begins to integrate the domestic rare earth industry, it will have a greater impact on the United States. This can be said to use the first trump card.

The US Treasury, which is considered the second trump card, has also received relevant news recently. As of February this year, China still holds 1.131 trillion US dollars of US Treasury bonds. On May 15, the US Treasury Department released data showing that China reduced its holdings of US Treasury bonds for the first time in nearly four months, amounting to US$20.45 billion. There is a voice that China will use this to retaliate against the United States as the situation worsens.

Sign Up for Our Newsletters

Get notified of important news and special executive deals.

You May Also Like

Ministry of Commerce report: China’s first quarter foreign trade overall stable structure continues to optimize

The Chinese Ministry of Commerce released the “China’s Foreign Trade Situation Report…

China Telecom Commissioner Ke Ruiwen takes effect for the chairman today

China Telecom (0728) issued an announcement stating that Ke Ruiwen has been…

McGinagall expects China will push policy valley economic growth “guarantee 6” RMB will not “wear 7”

China-US trade disputes continue and heat up, and economists estimate that China’s…

China imported 6.3 million tons of crude oil from Saudi Arabia last month, up 43% year-on-year

The amount of crude oil imported from Saudi Arabia last month increased…