Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, learns about the production process and operation of the JL MAG Rare-Earth Co. Ltd. as well as the development of the rare earth industry in the city of Ganzhou in east China's Jiangxi Province on May 20, 2019. Xi Jinping visited Jiangxi Province Monday on an inspection tour. (Xinhua/Ju Peng)
Bloomberg: Xi’s Trip to Rare-Earths Plant Stokes Talk of Trade Retaliation
President Xi Jinping’s visit to a rare earths facility fueled speculation that the strategic materials could be weaponized in China’s tit-for-tat with the U.S. on trade.
Shares in JL MAG Rare-Earth Co. surged by their daily limit Monday after state news agency Xinhua said the Chinese president had stopped by the company in Jiangxi. Official news outlets give regular updates on the whereabouts of top leaders, sometimes leading to share spikes on the belief that companies have been handed official backing.
But the visits may also flag policy priorities, and rare earths have featured in the escalating trade spat between the U.S. and China. The Asian country raised tariffs to 25% from 10% on American imports, while the U.S. excluded rare earths from its own list of prospective tariffs on roughly $300 billion worth of Chinese goods to be targeted in the next wave of measures.
Read more ....
Update #1: Xi Sends Trump A Message: Rare-Earth Export Ban Is Coming (Zero Hedge)
Update #2: Xi’s visit boosts China’s critical rare-earth sector (Global Times)
Update #3: China Threatens To Cut Rare Earths Supplies To The U.S. -- Bad Idea (Panos Mourdoukoutas, Forbes)
WNU Editor: Chinese state media are bluntly saying that this is an option that is open .... US need for rare earths an ace in Beijing’s hand (Hu Weijia Source, Global Times). More here .... US faces squeeze on rare earths (Global Times). Not surprising that some companies are now thinking of building rare-earth procession plants in the U.S. .... Australia's Lynas plans new processing facility in the U.S. (Reuters).
3 comments:
That's PERFECT! Best outcome I could hope for :D
What will happen:
Just like with fracking, once unleashed, the US spirit will crush prices for raw earth element production.
At least under Trump. Under Obama they'd probably have put their tail between their legs, ran off the world stage and called it "leading from behind"
Ohhh I remember the days. CNN and Don Lemon loved it. Told us it was the best. Told us not to vote for more of it would be "racist", or "sexist" or "something people who wear brown shirts would do".. Just classy.
Kind of makes you wonder what really drives those people!!??
Just like with fracking...." Agreed, however, it likely has nothing to do with "spirit" per say. It is a matter of having a need, someone being able to profit by adding value in regards to servicing this need, and then the government getting out of the way. With that said the US does have vast numbers of Christian people who pray fervently so I would not necessarily discount the "spirit" analogy entirely.
Generally I believe you are spot on in your analysis as to "what will happen." The Us ends up further increasing production "crushing" the price of these rare earth elements adding value to everyone pretty much as fracking has done. It seems to me that Xi and company just keep digging themselves a deeper hole. As I was once told, when in a hole, the first thing to do is STOP DIGGING!! Since China has decided the want to be an adversary going out of their way to do so, perhaps we should not interfere with an enemy who is undermining themselves.
"Kind of makes you wonder what really drives these people!!??" Not being in their minds or having access to inside information in real time I cannot "know" per say. I can infer based upon what I do know. Essentially Americans have been told for decades often hysterically at times that China is going to surpass us, China is the future, and other such things. I think Chinese have been told the same things. Ideology has set in for the Chinese causing them to believe that such nonsense was guaranteed for them and they are simply just better than everyone else and must rule by divine right or some other idiocy. IMHO this has caused them to make bad decisions.
That is unless the Democrats can succeed in impeaching Trump or getting the voters to vote him out of office. Regardless how it happens if it happens this will IMHO getting the voters to vote against their interests and/or to support policies that don't support their interests. In which case perhaps things go back to the status quo. This seems like a bad bet to me on the part of China if this is the bet they are making.
DJT has unleashed something in a number of Americans. After decades of being trodden on by our leaders and by foreign powers he has unleashed something in a number of Americans which is the feeling that our country can truly be great along with a desire to make it great!! When given the choice of advancement and the potential for advancement or settling for the mediocrity, I believe a majority are going to embrace the positive and uplifting hope that making our country great brings.
With regards to withholding rare earth elements from the US, as a certain movie star once said "make my day." In this case, "make our day Xi."
Post a Comment