China ready to strike back in the United States with rare earth: Newspapers - HailNewsUp.com: provides the latest news from India and the world

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Wednesday, May 29, 2019

China ready to strike back in the United States with rare earth: Newspapers

China ready to strike back in the United States with rare earth: Newspapers
China is ready to use rare earth to counterattack in a trade war with the United States, Chinese newspapers have warned in a massive commentary on Wednesday that the tension between the world's two largest economies will increase.

President Xi Jinping's visit to a rare earth plant last week gave speculation that China would use its key position as an exporter of rare earth as an influence on the trade war in the United States.

Rare Earth is a group of 17 chemical elements that are used in everything from high-tech consumer electronics to military equipment. It is possible that due to the trade value, its value can increase, due to which the shares of the producers' stock increased sharply with the company visited by Shi.

While China has not yet explicitly said that it will restrict the sale of rare earth in the United States, the Chinese media is firmly rooted that it will happen.

"In the remarks of The United States," Do not underestimate China's ability to retaliate, "the official newspaper of People pointed to the" uneasy "dependence of the United States on China's rare earth.

"Will the rare earth become a counter-weapon for China to answer the pressures without any reason? The answer is not a mystery," he said.

"Undoubtedly, the US side wants to use rare earth-manufactured products exported from China to export China and to suppress China's development, Chinese people will never accept it!", Communist Party's ruling news The letter said.

"We advise the American side not to undermine the Chinese side's ability to protect their development rights and interests, do not say that we do not warn you!"

The expression "Let's say we did not warn", usually only by the official Chinese media, its rivals are used to warn about the main areas of disagreement, for example, in 2017 the border dispute with India During and during the attack in Vietnam by China in 1978.

In its own editorial on Wednesday, sister newspaper Global Times said that export restrictions on rare earth "is a powerful weapon used in China-US trade warfare."

"However, China will use it primarily to protect," he said, though China may suffer a loss due to the export ban, the United States will have more damage.

The editor of the newspaper said on Twitter on Tuesday that Beijing was "seriously considering" export of rare earth in the United States.

China has used rare earth sales to put pressure on previous diplomatic disputes.

In 2010, Beijing had reduced the rare earth export quota after being hit by two boats of Japan Coast Guard near the deserted islands in the East China Sea.

In 2012, Japan, the United States, and the European Union complained to the World Trade Organization (WTO) about sanctions. Two years later, China was reprimanded by the WTO citing environmental causes to justify the quota. Ultimately, it ended its export quota system after losing the case.

Chinese business experts say that if Beijing goes ahead with new restrictions on the export of rare earth in the United States, then it is likely to follow the example of Washington and use national security as justification.

China repeatedly criticized Washington, who says that the National Security Exceptions are abused in the WTO, which is also included this week, as per media reports, it has blacklisted Huawei on the United States to break rules charged up. Technologies Co Ltd is the largest telecommunication network in the world. the creator.

But China has used national security considerations to block major US technology companies over the years. UU. Including Google and Facebook to work in your market.

In recent years, these restrictions have prompted the United States to call some parts of the business community in Washington to implement mutual policies with Beijing.

The shares of the company that Shi had seen last week, JL Mag Rear-Earth Company Limited, on Wednesday rose by another 10% to an all-time high level, which increased by 134.1% in May alone. China Rare Earth Holdings Limited increased by more than 40%, while Australia's Linus Corp, the only major producer of rare earth outside China, increased by 14.6%.

China took 80% of the world's rare earth imports between 2014 and 2017, with some other important Chinese minerals excluding them from the recent tariffs.

However, Beijing has increased the duty on imports of rare earth metallic minerals from 10% to 25% by June 1, due to which it has become less economical to process the material in China.

Some business analysts include California and Australian Accelerator is expected to bring new rare earth extraction capacities online in China if China uses its key position in the market to get a diplomatic advantage.