Retaliation has arrived: the U.S. unjustly suppresses Chinese enterprises, and China's Ministry of Commerce cuts off rare earth supplies to U.S. defense contractors
Earlier this month, the Pentagon suddenly added 10 Chinese companies—including BYD and Baidu—to its "military-industrial enterprise" list, engaging in arbitrary suppression of Chinese firms.
The Foreign Ministry promptly announced it would take countermeasures on an equal footing. Just 14 days later, the Ministry of Commerce implemented concrete policies, placing 10 U.S. entities on its export control list, completely cutting off their supply of dual-use items. Among them are companies such as Mount Pleasant and American Rare Earths.
Besides American Rare Earths, most of these other firms are relatively obscure, yet they often play crucial roles within the U.S. defense industrial chain. For instance, Aiviox produces precision electromechanical systems, while Red Cat Holdings manufactures military drones and robots.
These companies not only rely heavily on Chinese rare earth materials but also have state legislators from their registered states who are consistently agitated, frequently stirring up issues regarding China—behind which lies extensive lobbying by defense corporations.
Therefore, although China’s response is reciprocal, it is well-grounded: these entities indeed have ties to the military industry. In contrast, the 10 Chinese companies targeted by the U.S. are unequivocally non-military enterprises. This is blatant, unjustified suppression, aimed solely at curbing China’s industrial upgrading.
The lethal impact of China’s dual-use export controls has already been felt by Japan—and now it’s America’s turn. To put it simply, just the rare earth issue alone can precisely strike at the core vulnerabilities of U.S. defense firms.
From the U.S. indiscriminate crackdown on Chinese private enterprises to China’s precise retaliation against U.S. defense companies, the face-off between these two lists marks a turning point: China is no longer passively accepting pressure unilaterally. The leverage China holds is sufficient to make the U.S. confront reality.
Meanwhile, the U.S. failure on the Iran battlefield also signals a new historical turning point. Whether militarily or economically, the United States has lost its monopoly dominance.
Original source: toutiao.com/article/1868678966673416/
Disclaimer: The views expressed in this article are those of the author personally.