While China has so far not explicitly said it would restrict rare earths sales to US, Chinese media has strongly implied this will happen.
“DON’T SAY WE DIDN’T WARN YOU!”
In a commentary headlined “United States, don’t underestimate China’s ability to strike back”, the official People’s Daily noted the United States’ “uncomfortable” dependence on rare earths from China. “Will rare earths become a counter weapon for China to hit back against the pressure the United States has put on for no reason at all? The answer is no mystery,” it said.
“Undoubtedly, the US side wants to use the products made by China’s exported rare earths to counter and suppress China’s development. The Chinese people will never accept this!” the ruling Communist Party newspaper added. “We advise the US side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you!”
In its own editorial on Wednesday, sister paper the Global Times said an export ban on rare earths “is a powerful weapon if used in the China-US trade war.” “Nevertheless, China will mainly use it for defense,” it added, noting that while China might incur losses from a ban on exports, the United States would suffer more.
RARE EARTHS
Rare earths are a group of 17 chemical elements used in everything from high-tech consumer electronics to military equipment. The prospect that their value could soar as a result of the trade war caused sharp increases in the share prices of producers.
China has used rare earth sales to exert pressure in past diplomatic disputes.