F-35 fighter jet will not fly, missiles will fail…China threatening US due to…

World’s two biggest economic superpowers, the US and China have never seen eye-to-eye. The ongoing tariff war is the latest example. US President Donald Trump had imposed a 145 percent tariff on China. In response, China had imposed a 125 percent tariff on US goods. A deal was recently signed between the officials of both the countries in Geneva. Under this, both have reduced tariffs on each other. This arrangement is currently for 90 days. But there continues to be a lack of trust between the two countries and given this, this deal is not expected to last long.

For example, China maintains control over the export of rare earth. This is an important weapon for China in future negotiations with the US. Under the trade deal in Geneva last week, China promised to remove the non-tariff measures imposed on the US. Now companies are trying to find out whether this promise applies to rare earth minerals as well. China imposed export control on these minerals on April 4 including magnets made from rare earth elements which are very important. They are used in iPhones, electric vehicles, fighter aircraft like the F-35 and missile systems. And hence China has complete control over their supply.

According to a CNN report, after returning from trade talks in Geneva, US Trade Representative Jamieson Greer tried to ease concerns about this. He said in an interview that China has agreed to lift the export ban on rare earth. Greer said that China has agreed to remove those measures. If they do not do so, the situation will change. While there are no signs that China has lifted its new export controls, experts and industry insiders say Chinese authorities are tightening them even further.

Gracelyn Bhaskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies (CSIS), said China’s export licensing system could last for a long time. This will give Beijing an advantage in future trade talks with the US. It gives China the power to decide which companies or countries can access its real earth minerals and magnets.

 

News