China has found Trump's pain point - rare earths

China has found a new way to stick it to Donald Trump and the US - by restricting rare earth exports. The move, announced just last week, is seen as a major escalation in China's trade war with Washington. Rare earths are crucial for producing high-tech goods such as smartphones, electric cars, and military equipment.

Under the new rules, foreign companies will need Beijing's approval to export products that contain even a small amount of rare earths, and must declare their intended use. This effectively gives China control over the global supply of these critical minerals.

The move has sent shockwaves through Washington, with President Trump threatening to impose an additional 100% tariff on Chinese goods and put export controls on key software. But analysts say China's economy is unlikely to be hurt by the drop in exports - rare earths make up just a tiny fraction of China's $18.7 trillion annual GDP.

However, China's control over the global supply chain gives Beijing significant leverage in talks with the US. "The two sides should engage in effective communication, properly resolve differences and promote stable, healthy and sustainable development of China-US relations," said Chinese Foreign Minister Wang Yi.

The US could try to negotiate a deal, but experts say it's unlikely to succeed without some concessions from Washington. "China can carry on even if it costs a lot more under US export controls," said international business lecturer Naoise McDonagh. But if China cuts off rare earth supplies, that can actually stop everyone's industry - and that's the big difference.

In the short-term, Beijing holds all the cards in the trade war. But Washington has some strategic options at its disposal - such as offering to lower tariffs or targeting China's tech industry with export controls. The question is whether those options will be enough to counter China's newfound leverage.

I'm thinking... this whole thing feels like a game of global economic chess . China just moved their pawns, and now it's the US' turn to respond. But here's the thing - if China cuts off rare earth supplies, everyone gets hurt . The US can't just keep talking about tariffs and expect China to back down. They need to bring something real to the table .

I'm also wondering how this is going to affect other countries that rely on Chinese imports. Are they just going to get squeezed out of the market? It's not like the US can just impose its own trade policies and expect everyone to play by its rules. There needs to be some kind of global coordination or something.

But you know what? I think this might actually be a good thing for China in the long run . They're finally standing up for themselves and showing that they won't take crap from anyone. And if the US wants to keep its economy going, it's going to have to do some serious negotiating . So, fingers crossed that we can find a way out of this trade war without too much damage .

I'm kinda worried about this whole thing... like, what's next? If China can just dictate the global supply of rare earths, it's a big deal for everyone involved. Tech companies are already stressing about getting their hands on these minerals and now they're being held back by some bureaucratic red tape in Beijing .

The US has got to be careful not to go too hard or too soft here... if they're gonna try to negotiate with China, they need to bring something to the table that's worth more than just a promise of lowering tariffs . And what about the bigger picture? This isn't just about trade wars anymore, it's about global supply chains and innovation .

China might be feeling pretty good about itself right now, but let's not count them out just yet ... there are still plenty of ways for Washington to turn this around and even come out on top . We'll just have to keep an eye on how this whole thing plays out!

Ugh, this is gonna be a disaster... China's just gonna use its rare earth hold over us to strong-arm the US into doing what it wants and getting away with it . And good luck trying to negotiate with them, right? I mean, we're talking about a country that's already got a stranglehold on our tech industry thanks to Huawei... now they're gonna cut off our supply of rare earths just because Trump got bent out of shape over some trade deal . I'm not even sure why the US is surprised - China's been playing us from day one in this whole trade war thing .

I gotta say, this China thing is getting really complicated ... I mean, who knew rare earths were such a big deal? It's like they're trying to control the whole world or something . But for real though, it's a major escalation in their trade war and it's gonna be tough for the US to come out on top without making some serious concessions . China's got all the leverage now and they're not afraid to use it . It's like they're saying "Hey, we can control your tech industry and also limit your exports"... what a win-win for them . I don't know if the US has enough options to counter this move without losing some major ground ... maybe they need to get creative with their strategy .

man this china move is getting serious they're basically controlling the global supply chain for high-tech goods and it's a major win for them but at the same time, it's like they're pushing trump into a corner and now he's all like "i'm gonna impose more tariffs" which is just gonna make things worse in the long run i mean, china's economy isn't even that affected by this so what's the point of escalating?

just thinkin... this whole rare earth thing is a big deal, but like, what's the real goal here? Is china tryna punish us for somethin' or what? i mean, we know trump loves to play the tough guy, but like, how much leverage does he really have? 100% tariff on chinese goods? yeah right... china's economy is like a giant tank, it can absorb a lot of hits before losin' steam

This is not good, US is getting totally screwed by China... the fact that they're restricting rare earth exports basically gives them control over the whole global supply chain for high-tech goods like smartphones and electric cars. And now Trump is threatening to impose an additional 100% tariff, which just gonna make things worse. I mean, what's the plan there? And don't even get me started on China's economy - it's still a massive market with a huge GDP, so they're not going to be hurt by this. They can just keep exporting and selling their stuff elsewhere. The US is basically being squeezed between China's tariffs and losing out on access to the global market...

I'm totally stuck on this whole thing with China and the US... it feels like we're back in the Cold War days, you know? Remember how the Soviet Union used to control so much of the world's oil supply? Same idea here - China has got itself a new stick to poke at Trump and the US. Rare earths are crucial for all our fancy tech gadgets, but it's just a tiny fraction of their economy... 0.005% or something crazy like that. Still, this is huge leverage for China, and I can see why Trump's getting all worked up about it. But let's be real, Beijing has always been good at playing the long game. They're gonna sit back, watch us squirm, and wait for some kind of concession from Washington... meanwhile, they'll just keep exporting their rare earths like there's no tomorrow! It's like that old saying goes: "you can't hurt what you don't own"... not sure if China's got this one figured out yet though

OMG, I'm low-key skeptical about this whole rare earth export thing China's trying to play the 'we're gonna cut you off' card and I just don't think it'll hurt them that much Their economy is massive and these exports are like a tiny drop in the ocean - 0.00001% of their GDP, tbh? So yeah, they're not gonna suffer too much from losing rare earth sales, but at the same time, this gives China some serious leverage to play with And honestly, it's all about negotiation now - if China doesn't budge, the US might be stuck paying more for its tech and whatnot... Not sure how that's gonna sit well with Trump, lol

This move by China is a masterclass in strategic economic coercion . By exerting control over the global supply of rare earths, Beijing has dramatically shifted the balance of power in its trade war with the US. The fact that this tiny sector makes up such an infinitesimally small fraction of China's gargantuan GDP (0.00006%) hardly diminishes their impact - it's a classic case of 'it's not about the size, it's about the chokehold' .

The implications for US industry are stark: without access to these critical minerals, American companies will be forced to either find alternative suppliers or significantly increase production costs. Meanwhile, China is well-positioned to dictate terms and exact concessions from Washington. This isn't a tit-for-tat trade war; it's more like China holding the nuclear football and daring the US to make its move .

It'll be fascinating to see how this plays out - will the US try to negotiate, or attempt to game the system with strategic tariffs or tech export controls? One thing's for sure: Beijing has won this round, but the global economic landscape is about to become a whole lot more complex .