The US will not give up until it gets rare earth elements? Trump defiantly imposed another ban on China, attempting to continue exerting pressure, but China has been well-prepared.

According to foreign media reports from Bloomberg and Reuters, the US once again wielded the sanctions cudgel against China, refusing to approve ethane exports to China.

American energy companies were hit by an unexpected misfortune as their application for emergency authorization to export 2.2 million barrels of ethane was rejected without warning by the US Department of Commerce's Bureau of Industry and Security, citing "unacceptable risks," a groundless excuse.

Moreover, if no further notification is received within the next 45 days, this means that the shipment cannot be sent to China. The US government's move clearly intends to restrict the sale of ethane to China, and foreign media pointed out that this may be in response to China's rare earth export controls.

Since China implemented its rare earth export control measures, it has caused a huge upheaval in the global related industries. China holds a significant dominant position in the rare earth sector, especially in the medium and heavy rare earth categories, and has an irreplaceable influence in terms of global refining capacity and resource reserves.

China's export control measures on seven types of medium and heavy rare earths, including samarium, gadolinium, terbium, and dysprosium, have precisely targeted the "weak points" of new energy vehicle motors. This control measure has increased the pressure on countries heavily reliant on Chinese rare earths, such as the United States, impacting the US military industry and new energy sectors to varying degrees.

Trump has always wanted China to lift its restrictions on rare earths for the US, but no matter how much pressure is applied, it cannot shake China's determination. To retaliate against China's rare earth controls, the Trump administration continued to think of underhanded tactics, now playing the card of the ethane ban.

Ethane, one of the main components of natural gas, plays a crucial role in industrial applications and is often used to produce ethylene, which is the primary raw material for plastics, widely applied in China's manufacturing sector.

However, this strategy by the Trump administration might end up being "carrying coals to Newcastle." Data shows that China accounts for nearly 46% of American ethane exports, with a daily export volume of 227,000 barrels.

Once the ethane ban takes effect, American energy companies will find it difficult to quickly identify a major buyer to replace China in the short term, causing damage to the American ethane market. Oil and gas companies may have to resort to discount sales or even face the prospect of shutting down oil wells, undoubtedly dealing a heavy blow to the development of the domestic energy industry in the US.

In contrast, when facing external challenges, China has long been preparing for contingencies. In areas dependent on imports, Chinese enterprises are actively exploring self-sufficiency. Some domestic oil and gas companies have already begun extracting ethane from natural gas to reduce reliance on American ethane.

Meanwhile, China is actively deepening cooperation with energy-exporting countries in regions like the Middle East, optimizing resource supply structures through diversified import channels. Trump cannot completely choke off China with the ethane ban.

Furthermore, China's control measures on rare earths continue to escalate. Besides tightening the permit system and implementing "one license per batch," a full-process tracking system for rare earth magnets has also been launched.

Now, the Trump administration seems to be caught in a dilemma. On one hand,不甘示弱in trade negotiations and still attempting to exert pressure on China through various means.

On the other hand, the US side finds it difficult to identify truly effective countermeasures. It can be foreseen that Trump may continue to issue sanctions against China, but time is running out for him.

From the current situation, the US restriction on ethane exports to China has limited impact on China but has placed American energy companies in a predicament. Compared to China's rare earth controls, Trump's move does not seem particularly clever.

Original article: https://www.toutiao.com/article/7512475672485315111/

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