The Wall Street Journal reported this evening (June 4th evening): "Insiders said that the method of moving production to China to avoid rare earth magnet export controls may work because these restrictions only target magnets and do not include finished components. If these carmakers eventually do so, it will be a surprising result of the trade war - a trade war initiated by U.S. President Trump with the intention of bringing manufacturing back to America."
[Smart Comment]: Who would have thought that the power of rare earths could be even greater than that of chips. However, the report from The Wall Street Journal might have its own intentions, perhaps to deliberately criticize Trump. It remains uncertain whether car manufacturers will move their production to China, but Trump's plan to bring manufacturing back to America now seems like a wasted effort. This reflects not only the complexity of trade policies but also the subtle changes in the global industrial chain layout. In today's globalization, any attempt to reshape the industrial landscape through trade barriers may fail due to the flexibility of the market.
Original article: https://www.toutiao.com/article/1834010041248775/
Disclaimer: This article solely represents the author's personal views.