China Plays Games with Rare Earths: A Trade War Shaken, Not Stirred

The Art of the Deal (Or Not)

Right let's get down to business. Seems our friends in Beijing have been playing a bit of a cat and mouse game with the Americans. A trade truce they call it. More like a brief pause before the next act. Word is they've temporarily eased restrictions on 28 American companies. A gesture perhaps? Or a feint like a well placed baccarat bluff. Never trust a man who says 'trust me,' especially in international trade.

Rare Earths: More Precious Than Diamonds

But here's the kicker. While they're loosening the reins on some they're keeping a firm grip on those rare earth metals. Samarium gadolinium terbium... sounds like a villain's lair inventory doesn't it? These elements are vital for the US defense energy and automotive industries. A strategic chokehold if you ask me. As Goldfinger famously said 'Once is happenstance. Twice is coincidence. Three times it's enemy action.' And this my friends smells like enemy action.

Retaliation Sweet Retaliation

Apparently this all started when the previous US administration slapped tariffs on everything but the kitchen sink. China retaliated with export restrictions including those pesky rare earths. They've agreed to roll back some of these measures but it seems those metals are off limits for now. Why? Well that's the million dollar question isn't it? Or perhaps the billion yuan question in this case.

Dual Use Deception

Now about these 28 American companies getting a temporary reprieve. Many of them deal with 'dual use' items – things that can be used for both civilian and military purposes. Clever eh? It's like giving a villain a pen that doubles as a poison dart shooter. Companies like Universal Logistics Cyberlux and Teledyne Brown Engineering are breathing a sigh of relief but I wouldn't advise them to get too comfortable. The game is far from over.

The Unreliable Entity List: A Rogues' Gallery

And then there's the 'unreliable entity list.' Sounds like a guest list for one of Blofeld's parties. These companies are barred from importing exporting or investing in China. A few drone manufacturers like Sierra Nevada and Kratos got a temporary pardon. But the message is clear: step out of line and you'll find yourself on the wrong side of the bamboo curtain.

A National Security Tight Grip

The Chinese are playing hardball. They see these rare earths as leverage in their trade negotiations. A social media account linked to CCTV even hinted at how US defense industries might suffer. 'Strangled by rare earth shortages,' they gloated. It seems all departments in China agree that comprehensive control of strategic minerals is essential. Control is everything 00 section and that is why these minerals are a major concern for China.