It is not impossible, but it is very difficult to win a trade war against a totalitarian regime. Their leaders can withstand decades of a down economy because they never have to stand for election. That doesn’t mean that we shouldn’t try for vbetter terms and look for alternative trade partners. China only controls about a third of the known rare earth metal deposits, but that’s mainly because they are willing to take on the high cost and negative environmental consequences to mine them. If China pulls back, it opens the market for other countries to get in. Unfortunately, that will take years.
A Chinese state-run newspaper has warned the U.S. not to underestimate Beijing’s capabilities with its resources of rare earth minerals during a trade war between the two countries.
People’s Daily, the mouthpiece of China‘s ruling Communist Party, hinted serious consequences to the Trump Administration using a diplomatic term usually reserved by Beijing to signal the start of an armed warfare.
‘Don’t say we didn’t warn you!’ The newspaper said in a commentary today as it commented on the possibility of China suspending its exports of rare earths to the U.S.