China's Rare Earth Shock Raises Stakes In Trade War скачать в хорошем качестве

China's Rare Earth Shock Raises Stakes In Trade War

Donald Trump’s tariff war alienated longtime allies and gave China an opportunity to woo the world. Now Beijing’s hardball tactics are sparking a global pushback. China’s decision to unveil unprecedented export controls on the rare-earth supply chain dominated meetings at an annual huddle of global economic chiefs in Washington this week. Treasury Secretary Scott Bessent hinted at an emerging coalition, saying US officials were “speaking with our European allies, with Australia, with Canada, with India and the Asian democracies,” to form a fulsome response. Japan’s Finance Minister Katsunobu Kato called for Group of Seven countries to “unite and respond” to China’s moves, while his German counterpart touted a potential joint response of the bloc. Australia’s prime minister will head to Washington next week in the hope of negotiating a deal over critical mineral supply chains, as countries seek to diversify. Bloomberg's Brendan Murray Reports. All that marks an abrupt U-turn from six months ago when President Xi Jinping was rallying countries to stand together against the highest American tariffs unleashed since World War II. While China justified its latest curbs as a response to an expansion of US controls, the measures demand even foreign exporters get permits to ship products anywhere in the world containing traces of certain Chinese minerals. “The biggest risk is that the Chinese government overplays its hand,” said Christopher Beddor, deputy China research director at Gavekal Dragonomics. “Disrupting global rare-earth supply chains could create the impression Beijing is inflicting pain on a wide swathe of countries for no obvious reason.” The tension comes as Xi and Trump prepare for their first sitdown in six years this month in South Korea. Negotiators from both sides are expected to huddle next week, providing an opportunity for the rivals to find an off-ramp from the latest tensions and allow their rolling tariff truce to extend.  Whatever compromise unfolds, it’s unlikely Ch Whether a miscalculation by Beijing — or an opportunistic bid by a superpower eager to police critical supply chains — the showdown taking shape marks a setback for Chinese efforts to build relationships on the world stage. Only weeks earlier, Xi’s show of bonhomie with India’s Narendra Modi sent a message that China could be an alternative partner for nations roiled by Trump’s upending of US foreign policy.  Wu Xinbo, director at Fudan University’s Center for American Studies in Shanghai, tried to downplay the impact on third countries. Nations enjoying good trade ties with Beijing, and that don’t join US efforts to sanction China, won’t be the target of the new controls, he said. “This actually gives China more leverage in making sure other US allies will not jump aboard to help the US in pressuring China,” Wu told Bloomberg Television. “I think China knows how to play the card wisely.” US Trade Representative Jamieson Greer made the opposite argument this week, warning countries about the “unimaginable” scope of curbs he said could choke the supply of everything from artificial intelligence systems to household appliances.   “It covers the whole world,” he said, calling out smartphone trade between South Korea and Australia, as well as US-manufactured cars being shipped to Mexico as operations that could be paralyzed. “Obviously, neither we nor our allies are going to go along with that kind of system.” Greer in an interview Thursday on Fox Business said it was “possible” the US could take stakes in additional rare earth companies to increase access to those minerals. “The main thing we’re looking for is to have our own ability to obtain rare earths,” Greer said. “Ideally, if you have a private company that’s able to do it, if you need some public support or help to move it along, then we’ll do that.” The Trump administration in July agreed to a $400 million equity investment in MP Materials Corp. to fund a plant for rare-earth magnets and earlier this month said it would take a 10% stake in Canadian firm Trilogy Metals Inc. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X:   / bloombergradio   Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts:    / bloombergpodcasts   Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg   Quicktake:    / @bloombergquicktake