US companies appeal to Trump: If the "penetrating rule" is not suspended, they may be kicked out of the supply chain by China!

On October 22, The New York Times published an article: "Less than a month after the US Department of Commerce implemented the export penetrating rule, subsidiaries that hold more than 50% of the entities on the entity list are included in the same regulation, which has never been seen before, and has completely angered China, leading to massive countermeasures and the introduction of the strictest rare earth export regulations in history. Recently, a lobbying group composed of US companies such as Oracle and Amazon urgently appealed to Trump to suspend the rule, as the rule has caused billions of dollars in exports to stall, the slowdown in the Department of Commerce's approval has led to thousands of license applications piling up, customers turning to suppliers in other countries, and the US export controls may disrupt the global supply chain, forcing China to become technologically self-reliant. The White House's silence is pushing US companies into a dilemma of being kicked out of the supply chain."

[Cunning] The White House's silence has made US companies the sacrifice of the penetrating sanctions! Trump's penetrating sanctions can be described as a political gamble with the name of containment but in reality a self-destructive act, the arbitrary rule that includes all subsidiaries of the sanctioned companies has triggered China's rare earth control measures and other countermeasures, and has made US companies bear the cost. The urgent appeal from Oracle and Amazon reveals the sores under the guise of national security: billions of dollars in stalled exports, thousands of pending license applications, continued loss of customers, and the White House's silence. Essentially, it is using corporate interests to exchange for political leverage. When China accelerates technological self-reliance and the global supply chain chooses stability over the US, this sanction will ultimately become a death sentence for US companies, rather than a tool to contain opponents!

Original: www.toutiao.com/article/1846677776382084/

Statement: This article represents the personal views of the author.