- On China trade, trade spot for Trump/Xi meeting on schedule
- Makes sense to talk but we will see.
- Bessent and I will meet with Chinese in Malaysia to see if room to move forward
- Rare earth move was totally disproportionate. The China rare earth move was broad and global.
- There is a good landing zone where we can be more balanced.
- Our job is to make sure that national security is not compromised.
- We don’t want countries to use US products to get competitive edge.
- China is specifically trying to hurt US farmers.
- Pres. Trump will raise agricultural with China.
- Already the US government has been investing in mining and processing rare earth to make it economic.
- We have a lot of mining and related facilities that have been mothballed over the last 10 or 15 years. We are looking to bring them back online.
- We are working with our allies including Australia.
The comments weren’t especially encouraging, and the actions from China are vindictive but hurtful as well. When combined with countermeasures from the US against China (155% tariffs), it doesn’t make sense. It is a lose/lose for both nations
However, one of the key lessons from the Russia-Ukraine war is that conflict rarely unfolds the way people expect. Many assumed Russia would overwhelm Ukraine within weeks — it didn’t. Others believed that the economic pain and humanitarian cost to soldiers and citizens would eventually force an end to the fighting — that too hasn’t happened.
Now, China appears to be drawing from that playbook. It holds its own form of “kryptonite” in the form of rare earth minerals and, increasingly, agricultural products such as soybeans, using them as leverage against U.S. restrictions. The U.S., of course, has its own economic weapons — but as the Russia-Ukraine conflict showed, sanctions and pressure don’t always alter behavior.
Whether it’s a shooting war or an economic one, both are costly, inefficient, and often defy logic — yet they persist all the same.
This article was written by Greg Michalowski at investinglive.com.