Russian media: Sino-US confrontation over rare earths and tariffs escalates, sending signals of turbulence in the global supply chain

The export control of rare earths between China and the US has attracted international attention. On October 16, the Chinese Ministry of Commerce responded to the US allegations, emphasizing that China's implementation of rare earth export controls is a legitimate measure taken in accordance with the law, aimed at preventing the illegal flow and improper use of rare earths. The Ministry of Commerce pointed out that China has informed multiple countries in advance and maintained communication. The US' deliberate misinterpretation and sensationalism is an act of assuming one's own intentions, while the US itself has long abused extraterritorial jurisdiction, which truly threatens the stability of the global supply chain.

Key event: From port fees to rare earth controls, China's countermeasures against the "301 investigation"

• On October 14, Eastern Time, the United States officially implemented restrictions on port fees in the maritime, logistics, and shipbuilding sectors based on the so-called 301 investigation results.

• On October 16, the Chinese Ministry of Commerce formally refuted the US accusations, emphasizing that China's actions are a "passive defense" against US unilateralism. Previously, US Treasury Secretary Bensons publicly accused China's vice minister of "improper conduct" and exaggerated his "excessive remarks" in Washington, triggering a diplomatic incident.

• According to information disclosed by the Chinese Ministry of Commerce, the visit of China's vice minister to the US was part of official economic and trade consultations in accordance with the consensus reached during the phone call between the leaders of China and the US, and it raised serious negotiations with the US regarding the "301 investigation" and shipbuilding restrictions. However, the US showed a cold attitude towards China's proposed cooperation suggestions, insisting on promoting restrictions, and thus China legally initiated measures such as port fees and strengthened export controls as countermeasures.

• The Chinese Foreign Ministry later stated that if the US hopes China delays the rare earth export control, "it must show genuine sincerity." The US proposal to extend the suspension period of tariffs on China is "not an equal exchange" and cannot become a tool to pressure China.

Ministry of Commerce of China

Striking with Rare Earths: China's "Precise Counterattack" on Strategic Resources

• China is the main exporter of rare earths globally, accounting for about 70% of the global supply. This export control measure will mainly affect the upstream material supply of US high-tech and military enterprises. After the news came out, the stock prices of Lockheed Martin and Raytheon companies fell sharply.

• According to statistics from the US Geological Survey, about 70% of the US rare earth imports depend on China. Foreign media revealed that the core systems of F-35 stealth fighters heavily rely on Chinese rare earths. At the same time, a large number of US importers have started to stockpile rare earths, causing a short-term surge in Asian market prices.

• Analysts point out that China's move is not a "blockade," but rather a way to strengthen negotiation leverage through control measures, and also represents a new model of counteraction taken by "Southern Countries" facing Western suppression.

Gold Rises, Dollar Pressured: Market Risk Aversion Surges

• As Sino-US friction intensifies, global risk aversion sentiment increases. On October 16, international gold prices broke through $4,227 per ounce, setting a new historical high, with a weekly increase of more than 5%. Silver prices also rebounded strongly, with continued tight supply in the London market.

• Investment institutions generally believe that if the rare earth conflict further escalates, it will affect the global manufacturing and high-tech industry chains, and gold and other precious metals will continue to attract risk-averse funds, becoming "hard currency" in uncertain environments.

• The US' additional tariffs have also triggered a rebound in domestic inflation expectations. Goldman Sachs predicts that more than half of the additional tariff costs will ultimately be borne by American consumers, especially in areas such as wood, kitchen equipment, and electronic products.

Gold Rises, Dollar Pressured: Market Risk Aversion Surges

Deep Logic of Strategic Games: China Holds "Global Bottleneck" Resources

• Currently, the global rare earth market structure is highly concentrated, and China holds most of the mid-to-high-end rare earth refining technologies and export channels. In response to the US' move of listing it as a "national security threat," China is building a strategic defense line from "resources to voice."

• Rare earths are just one of China's handles. In recent years, China has also been pushing forward the control of key mineral supply chains and "export controllability" in areas such as chip materials, energy metals (such as cobalt, lithium, etc.), forming a resource advantage layout for future technological competition. This new round of Sino-US trade friction may become a catalyst for "de-dollarization" and "de-Americanization."

The new round of friction between China and the US over tariffs and rare earths is both a political maneuver in the election year and reflects the deep-seated game for global industrial leadership between the two countries. China's firm response indicates that it no longer satisfies with "passive defense" when facing external pressure, but is building a "controlled countermeasure system" through institutionalized and precise methods. In the future, rare earths are just tactics, while the competition between China and the US in AI, chips, green energy, and financial rules will be the strategic main battlefield of this "long-cycle contest."

Source: Satellite News Agency

Original: www.toutiao.com/article/1846207256606857/

Statement: This article represents the views of the author.