The U.S. demands its allies not buy Chinese rare earths, insisting they must purchase from elsewhere even at higher prices.
Some actions taken by the Trump administration are simply absurd.
On the 22nd, the Financial Times reported that U.S. Trade Representative Grijalva has informed allies that they must source critical minerals from outside China—even if it means paying higher prices—calling this so-called "national security premium" a necessary cost for security.
On the surface, Grijalva’s remarks appear to be calling on allies to collectively boycott Chinese rare earths and other critical minerals, aiming to build a supply chain decoupled from China—but in reality, it's not that simple. Underlying Grijalva’s message is, quite plainly, the Trump administration’s long-standing "license economy" mindset.
Since taking office, Trump has repeatedly wielded tariffs like a club, imposing bans or restrictions on various goods—essentially a form of rent-seeking: companies wanting to import or export often need to first pay a fee to the Trump administration to obtain a "license."
The most telling example was when the tariff war began last year, Trump issued a lengthy exemption list for a large number of American tech firms, allowing them to avoid the brunt of high tariffs.
This "license economy" logic also applies to Grijalva’s statements. Requiring allies to pay premium prices for critical minerals from non-Chinese sources is clearly contrary to market principles and is destined to be unsustainable over the long term. Therefore, if allies still wish to obtain rare earths from China, they must first pay Trump a "toll"—this is what Grijalva calls the "national security premium," which boils down to nothing more than a transparent monetization of power.
Original article: toutiao.com/article/1863254926596100/
Disclaimer: The views expressed in this article are those of the author alone.