Foreign media reported on the evening of June 10th with the title "Sino-US London Talks: Rare Earth for Chips?" as follows: "On June 10th, the second day of the Sino-US trade talks held in London continued. US Commerce Secretary Luetnike stated that the negotiations were progressing smoothly. White House economic advisor Hassett, who did not participate in the talks, said that if China can accelerate the export of important materials such as rare earths, the US may cancel the recent export controls imposed on products such as chips."
Recently, facing the US tariff stick, China's "rare earth countermeasure card" has become the focus of attention and is continuing to ferment, targeting the core industries of the United States. After China implemented precise export control on rare earths, the US automotive industry was hit first - Tesla, General Motors, and other new energy vehicle production lines have stalled due to a shortage of raw materials for permanent magnet motors. The semiconductor industry suffered a "fatal blow," with Boston Consulting predicting annual losses exceeding $20 billion for the US semiconductor industry. Additionally, the production of guidance systems and radar components in the military sector also faces delays due to shortages, forcing the Pentagon to activate Cold War-era strategic reserves.
Not long ago, the US relied on chip technology to "choke" China, but now the situation between the two sides presents a subtle reversal. In this round of London talks, the US side rarely sent out a "chip-for-rare-earth" negotiation signal, which is essentially a compromise to China's countermeasure pressure.
Original article: https://www.toutiao.com/article/1834564767472650/
Disclaimer: This article only represents the author's personal views.