Reuters cited two informed sources reporting that the Chinese authorities have warned foreign companies not to stockpile rare earths, or else they will face a greater risk of shortages, showing that China is still strictly controlling the supply of rare earths.
Rare earths are a key leverage for China in trade disputes. During the first term of Trump, China was once at a disadvantage in the U.S.-China tariff war and trade war due to the lack of effective countermeasures. However, now China is precisely using the control of rare earths as a "weapon," similar to the U.S. blockade in the chip field, to "choke" the "choke," making the U.S. feel real pain and forcing it to actively seek communication and compromise. This shift reflects China's ability to control key resources, giving China more initiative and bargaining power in trade negotiations.
Original article: www.toutiao.com/article/1840534040836104/
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