Xi Jinping he had said it. To counteract the duties imposed by Trump there is no need to impose counter-duties: in his toolbox he has many other weapons capable of responding to the commercial aggression of the US president and certainly one of these is the blocking of supplies of various critical materials, including some Rare lands. A theme that goes straight to the heart of Trump, so eager to grab those fundamental materials for theUS industry that he would like make independent from all the others. Hence that arrogant interest in the Grolandia and for certain areas of Ukraine. Trump has also already invoked emergency powers to increase the United States' capacity to produce essential minerals. According to the Financial Times, the administration of U.S. President Donald Trump is also planning an executive order to allow the stockpiling of essential metals from Pacific Ocean Floor.
China halts deliveries of new Boeing aircraft
But that's not all. In the last few hours, Beijing has also ordered its airlines not to accept further deliveries of Boeing jets, again as part of the "tit for tat" trade war that has seen US President Donald Trump impose duties of up to 145% on all imports of goods made in China. The news, reported by Bloomberg citing sources close to the dossier, immediately went around the world. Beijing has also asked Mandarin airlines "to suspend any purchase of aircraft equipment and components from US companies".
Xi Jinping's Toolbox to Respond to Trump
Following the red thread that links the measures of the Chinese government in counter-offensive to the trade war started by Trump, which range from internal incentives and incentives, to a progressive devaluation of the yuan, to new trade links with Vietnam, Malaysia and Cambodia, but also with the European Union, therare earth weapon It is among the most devastating because it explodes in large production areas in the world: from components for the war, electronics, automotive, aerospace industries, hitting drones, robots, missiles, but also semiconductors used in servers for artificial intelligence up to smartphones.
China knows very well that it is by far the world's largest supplier of these minerals, which include 17 elements of the periodic table. But more: it is not just a question of having the deposits, but also of extracting and processing the materials, which involves a great commitment in terms of manpower, investment and environmental impact. In short, a dirty job that a bit of the whole West, including the USA, has so far willingly left to the Chinese to do. China controls 60% of the world's extraction but above all 90% of the refining, representing a potential geopolitical weapon. Beijing has already introduced similar restrictions on other critical minerals, such as gallium, germanium, graphite and antimony, in the past two years, in the face of rising trade tensions.
Now the balance has been upset. Beijing, reported the New York Times, is now working on developing a new regulatory system which, once it comes into force, could cut off some companies, including American military contractors. Meanwhile, the container ships which were supposed to ship the usual quantities in these days remain stopped in Chinese ports. If the blockade continues, within two or three months American industries will find themselves in trouble, given the limited alternatives available. new controls export restrictions are not an outright ban, at least not yet, but they mean that any shipments abroad will be subject to more stringent checks to establish who is buying and why. And other metals have already seen export volumes plummet to zero after the controls were introduced, as exporters need time to obtain certification.
In his trade war, Trump announced a 9-day pause on much of his “reciprocal” tariff program on April 90, but doubled down on China, raising its new import tax to 145%. China responded by raising its new tariffs on shipments from America to 125% starting April 12 and said it would not match any further increases announced by Washington because the Trump administration’s soaring numbers have “become a joke.”
THElist of rare earths announced include samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium. However, two of the most common – neodymium and praseodymium – were not included. They are used in powerful magnets, one of the best-known applications for rare earths. “Unlike the seven rare earths selected, these are more readily available outside of China, which could make any controls less impactful,” said David Abraham, an affiliate professor at Boise State University in Idaho, as reported Bloomberg. “They may have been excluded to preserve the possibility of future checks.”
Beijing to EU: “Let's defend global trade rules together”
Beijing is also moving in other areas, other than those of duties. For example, China has said it is ready to strengthen the cooperation with the European Union and with the rest of the international community to uphold “international trade rules, fairness and justice,” as Chinese Foreign Ministry spokesman Lin Jian said at a press conference in response to a question about the ongoing consultations between Beijing and Brussels on the additional tariffs imposed by the United States. Lin criticized Washington's approach, accusing it of endanger global stability. “The United States uses tariffs as a weapon to exert maximum pressure and gain selfish benefits, putting its own interests above the public good of the international community,” he said. “This is a typical manifestation of unilateralism, protectionism and economic bullying, which seriously harms the interests of China, the EU and the rest of the world.”
According to Lin, China and the European Union, as the world's second and third largest economies, "together account for more than a third of the global economy and more than a quarter of global trade" and share the same approach to international trade: "Both sides are advocates of economic globalization and trade liberalization, as well as staunch defenders and supporters of the WTO."
“The EU leadership has stressed the vital importance of stability and certainty for a healthy global economy,” Lin added. “China and the EU are committed to a fair, free and WTO-centered multilateral trading system, and to the healthy and stable development of global trade and economic relations, which is in the interests of both sides and the rest of the world.”
Solvay will be able to return to processing rare earths and satisfy 30% of European demand
Meanwhile, the Solvay Chemical Group which has announced that it wants to resume processing of rare earths that it had in the past, to face any barriers from China also in Europe. The company aims to meet 30% of the European demand for processed rare earths for magnets by 2030. Its plant in La Rochelle, on the French Atlantic coast, was once among the largest in the world. “What is happening is an incentive to develop these regional value chains,” he told Reuters Chief Executive Philippe Kehren at the launch of the expansion of the 77-year-old plant in La Rochelle. “The issue is not production capacity. We can adapt to needs,” said An Nuyttens, president of Solvay’s rare earths division. “The car manufacturers, the wind turbine manufacturers, they are the ones who will make this happen or not.” The final production could range from 2.000 to 5.000 tons of rare earth oxides, but Solvay does not plan to continue the process to produce rare earth metals, alloys or magnets, he added.
Xi Courts Vietnam, 45 Agreements Signed
The other terrain on which China is moving is that of the countries closest to it, what we call the Far East. In the meantime, 45 cooperation agreements have been signed by China and Vietnam at the start of Xi Jinping's tour of Southeast Asia, which will also include Malaysia and Vietnam in the coming days. China's goal is to get there before Trump and strengthen trade relations to offset the impact of the tariffs. Xi met with Vietnam's Communist Party general secretary To Lam. The cooperation agreements signed range from artificial intelligence to railways, from supply chains to joint maritime patrols. The agreements were signed despite territorial disputes in the South China Sea.
For Xi, Vietnam and China are facing “a turning point” in their history and must “go forward hand in hand”. And Lam assured that Vietnam is “always ready to work with China” to ensure that cooperation between the two countries is “substantial, balanced and lasting”.
