"In the face of the U.S. threats to raise tariffs, China still sent a high-level delegation to the U.S. for talks as agreed, out of consideration for the bigger picture and showing sincerity and goodwill", he added. An editorial in the official People's Daily newspaper on the subject warned, "Don't underestimate China's ability to strike back".
It must be stressed that war is not likely in the short term between China and the United States, and the "Thucydides Trap", where an established power is challenged by an emerging power, is not pre-ordained. Specifically, the China is mulling curbing export of critical Rare earths minerals in a targeted way that could hurt the USA economy, Bloomberg reports.
Dysprosium might be one of the more critical elements because of its use in permanent magnets, he said. But, as a practical matter, China's cutting off rare-earths shipments to the United States would likely be of limited effect.
China's rare earth market is dominated by a handful of producers, including China Northern Rare Earth Group, Minmetals Rare Earth Co., Xiamen Tungsten Co. and Chinalco Rare Earth & Metals Co. It sits on close to 40 percent of rare earth resources and its 120,000 tons of annual production accounts for about 80 percent of global supply. It matters a great deal to individual companies but is minuscule in the global economy.
But it is not clear how the Chinese government could readily upset the industries that make those products by depriving the United States of rare-earth shipments.
And if China actually does put a rare earths ban into place, Trump would certainly be facing his biggest obstacle yet.
A key measure of Chinese manufacturing activity for May also came in below expectations, rising questions about the effectiveness of Beijing's stimulus steps and the health of the global economy. At the start of the 2018-19 marketing year, US exports of soybeans to China had dropped by 97 percent.
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Durant traveled with the Warriors to Toronto, largely so he could work uninterrupted with the team's medical staff. Cousins responded by posting 11 points, 10 rebounds, and six assists and he was a plus-12 in 28 minutes.
In reaction to this, rare earth prices had soared as the Chinese government cut export quotas by 72 per cent with rare earth exposed stocks also benefitting.
Mr Dong Yang, a former executive director at the China Association of Automotive Manufacturers, said at the seminar that U.S. auto parts suppliers will also be hard hit if the trade war continues and that competitors from Germany, Japan, South Korea and France can provide strong substitutes to serve the Chinese market. Otherwise, if China suspended exports of rare-earth magnets to the United States, Japanese firms that now have excess magnet-making capacity and receive rare-earth oxides from China would simply make the magnets that American consumers want. However, as a people, the Chinese can absorb far more pain than the Americans, experts point out.
Once a foreign firm is added to the list "all goods, services, technology, and software covered by (China's commerce ministry) will then require a license to be sold to the entity". Visit MarketWatch.com for more information on this news. But non-Chinese mines are not starting from scratch today.
Donald Trump's tariff threat against Mexico may end up signaling a lot more than just the President's latest twitter-launched policy tirade. "When its threats didn't work and led to widespread doubts and market fluctuations at home and overseas, U.S. resorted to muddying the waters and shifting the blame", he remarked. There are three other processing plants under construction or in planning in the US, but they will not be online until 2022.
The U.S. has only one operating rare earth mine of its own, Mountain Pass Materials (MP Materials), in the Southern California desert not far from the Nevada line.
Beijing and Washington have been engaged in a trade war since last July, when Trump first imposed tariffs on hundreds of Chinese products worth billions of dollars, leading to a set of retaliatory tit-for-tit tariff increases.