News Analysis
Just as the U.S.–China trade war appeared to be easing, China suddenly imposed its toughest restrictions on rare earths, shocking the Trump administration and global markets. However, the former chief economist of the International Monetary Fund said that in its attempt to negotiate better trade terms with the United States, Beijing is attempting to emulate President Donald Trump’s negotiating style. However, he said that in this trade war, China’s use of rare earths as a trump card will severely weaken its monopoly position as countries work to find other sources.
On Oct. 9, China imposed stricter restrictions on rare earth exports. The new export control measures announced by the communist regime’s Ministry of Commerce took effect on Thursday, requiring companies to obtain special approval to export rare earth products originating in China, even if they contain trace amounts of rare earths, including products produced overseas by non-Chinese companies….
China’s Coercive Use of Rare Earths Will Weaken Its Monopoly: Former IMF Chief Economist
