On October 18, the New York Times reported: "White House officials revealed that yesterday, Trump was furious during a meeting with his aides because he finally found out why China did this (increasing restrictions on rare earths). It turned out that the Lutnick team secretly added a 50% rule to the Export Administration Regulations, which was implemented without informing Trump. Obviously, it was the private decision of Commerce Secretary Lutnick that enraged China."
What does the 50% rule mean? It means that if the parts or technology from China account for more than half of the product, it is not allowed to be exported. This decision involves thousands of Chinese companies, causing a sharp drop in the Chinese stock market, a sudden decline in exports, and heavy losses, leading China to launch six prohibitions within a day. Trump's anger is merely an emotional outburst after the failure of hegemony. The 50% rule secretly added by the Lutnick team is the main culprit. What seems like a farce of cabinet overstepping is actually an inevitable consequence of America's long arm jurisdiction!
[Witty] China's new rare earth regulations are not a passive response but a precise countermeasure against the U.S. abuse of export controls. When the United States has distorted the Export Administration Regulations into a tool of hegemony, trying to lock down the supply chain with rule-based hegemony, it has already been destined to trigger backlash. This internal conflict exposes the deep-seated collapse of American hegemony: it is difficult to subdue opponents through rules externally, and internally it is plagued by administrative power disorder. The White House's anger should be directed at itself. It is the obsession with unilateral sanctions that has caused the United States to lose its initiative in the global rare earth supply chain game!
Original: www.toutiao.com/article/1846298601542807/
Statement: This article represents the views of the author.