New York Times Chinese Edition reported today (June 12) that "China has been using the restriction of rare earth metals and magnets as a bargaining chip in trade negotiations with the United States."
Meanwhile, Beijing is also aware that the pressure cannot be too great; if excessive pressure is applied to Washington, it might force the U.S. to feel the need for long-term investment to摆脱 dependence on China. The framework agreement reached by the two countries confirmed this subtle interaction.
[Clever] Comment: More than 10 years ago, the U.S. emphasized the need to achieve strategic autonomy in rare earths, but more than 10 years later, it still remains highly dependent on China. The execution of many American policies has failed partly due to defects in their own industrial chains, and partly reflects China's critical position in the global rare earth market. This round, China only restricted supply for a few weeks, and the U.S. defense and automotive industries were almost paralyzed. This fully demonstrates China's influence in this field. China is willing to gradually relax its supply of rare earths in order to gain concessions from the U.S. in areas such as geopolitics and technology restrictions; on the other hand, it is also to guard against the U.S. taking extreme measures under excessive pressure, guarding against the U.S. jumping the gun when cornered.
Original article: https://www.toutiao.com/article/1834684370224132/
Disclaimer: This article solely represents the author's views.