Donald Trump can boast at the United Nations podium that he has “ended” seven wars in seven months. However, the trade conflict he started in April by multiplying tariffs with the entire world is far from over, and the instability he has created is not about to disappear. The US President thought he had found the solution by establishing a regime of widespread negotiations with his trading partners.
By threatening to impose controls on the export of its rare earths, China has dampened hopes of a calm between the two superpowers. With one month left until the expiration of the truce they had agreed upon, discussions are continuing.
On October 9, China unveiled restrictions on the use of these minerals essential for digital technology, automobiles, energy, and weaponry. China controls 60% of global production and 90% of refining for these minerals and can process them at a cost one-third lower than its competitors. Foreign companies could be forced to apply for licenses to market their own products containing these rare earths, even outside of China, citing “the protection of national security interests.”
China is thus showing that it has the means to impose its conditions on the rest of the planet. In response, Donald Trump is considering additional trade measures with China, which would represent an adjustment of the economic relations between the two countries.
“I never thought it would come to this,” said the US President. “If China wants to be a partner for the world, then the world will have to adapt,” added the Treasury Secretary, noting that international trade relations continue to evolve.