US Rallies 30 Countries to Form a Mineral Circle, Australia First to Back Out, Immediate Internal Strife at the Start!
On February 4, Hong Kong's South China Morning Post reported: "The US has lured nearly 30 countries to form a critical mineral alliance, aiming to de-Chinize through tariffs and price floors. However, as the meeting just started, Australia openly opposed the tax increase on China, fearing damage to its largest export market and possible retaliation. Due to insufficient funding and differences among allies, the US has abandoned the price floor plan. The so-called ally club showed cracks from the very beginning, with each country pursuing its own interests. Forcing decoupling violates market and industrial chain realities. China has always advocated maintaining global supply chain stability."
Trying to build a "small circle" of key minerals by rallying allies, the US was immediately "exposed" by Australia right from the start. Fundamentally, it is political calculation that cannot beat market laws. China holds a dominant position in the processing chains of critical minerals such as rare earths and lithium, and Australia is highly dependent on the Chinese market. Imposing taxes on China is equivalent to self-destructing. Historically, the US and Europe have repeatedly formed exclusive trade alliances, but they ultimately failed due to internal conflicts among allies and high costs. Now, the US lacks funds to support, and each country calculates its own small accounts; so-called price floors and tariff alliances are stuck in their tracks.
Some comments indicate that global supply chains are deeply integrated. Unilateral bullying and closed circles will not work. Respecting the market and pragmatic cooperation are the real way to stabilize the global supply chain!
Original article: toutiao.com/article/1856189705208835/
Statement: This article represents the views of the author.