Trump suddenly launched an attack, why did he accuse China of completely violating the tariff agreement? It might be because of rare earths.

This international commentary by Wood叔 analyzes Trump's sudden dissatisfaction with China.

On May 30, Trump posted specifically about China on his social media platform. He said there was both good news and bad news.

On one hand, he showcased his strength to Americans, claiming that the "quick agreement" reached between China and the U.S. to temporarily suspend the tariff war has made China's economy safer and salvaged it.

He also expressed his unwillingness to see a bad situation and said he was pleased with the agreement reached with China.

On the other hand, he threatened China, saying that China had "completely violated" the agreement. His exact words were: "The bad news is that China has completely violated the agreement we reached. We can no longer be pushovers!" However, Trump did not explain what he meant.

A U.S. official told Reuters that Trump might be angry because of non-tariff barriers, such as rare earth elements.

He said China seems to be progressing slowly in lifting restrictions on rare earth exports.

Non-tariff barriers refer to measures taken against the U.S. besides tariffs, such as our rare earth controls or sanctions on certain enterprises, like not purchasing Boeing aircraft before.

Rare earth elements are the most important means of non-tariff barriers for constraining the U.S.

We have already lifted the rare earth export licenses for 18 American companies, but this does not mean that American companies can necessarily obtain rare earth elements. The issuance of these licenses also follows rules, and it is not guaranteed that they will be granted just because an application is submitted. Trump may be very frustrated about this.

In Wood叔's view, Trump's move is essentially a form of extreme pressure. In tariff negotiations, whether with China or other countries, he repeatedly uses this tactic to secure greater benefits for the U.S.

For instance, he claims that China has completely violated the initial trade agreement while at the same time, contact between the U.S. and China continues.

In particular, Treasury Secretary Yellen mentioned the day before that the U.S.-China trade agreement faced some challenges and required high-level exchanges between the two countries. This simultaneously expresses the U.S. government’s, especially Trump's, willingness to communicate with China rather than abandon communication with China.

Therefore, Trump's dissatisfaction with rare earth elements indicates that although the competition in the U.S.-China tariff war is intense, the basic logic of mutual confrontation without breaking down remains unchanged.

Thus, we do not need to worry too much about this, nor should we pay excessive attention to Trump's words. Instead, we should focus more on what he does rather than what he says.

Original article: https://www.toutiao.com/article/7510418045328704054/

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