The United States will speculate on China’s rare earth threats (shares)
Note from Mike Luther, Editor & MD of Global REEs Venture - Our sources in China spotted the story below in the China press. The report suffers from a weak translation and for that we apologize. Subtle references are exceedingly important and often the message is "lost in translation". However, it should be clear from below that China believes that Trump is playing favorites (with the likes of Russia). Moreover, China policy-makers know that the USA is entirely dependent upon China for REEs. The situation is all-the-more tricky in light of the possibility of Lynas' Malaysia REEs plant shutting down. According to the report, the Pentagon has separately listed rare earths and “energetic materials” that are extremely important for ammunition and missiles. China's aggressive industrial policies have hampered US defense technology, involving military solar cells, aircraft LCDs, and rare earth elements. Reuters previously mentioned that the US Department of the Interior's report released in December last year showed that 20 of the 23 key mineral resources used by the United States depend on imports from countries such as China.
The words “China”, “Chinese” or “Beijing” appeared 232 times in the report, while “Russia” only appeared once. The report emphasizes that "China isthe single or even sole supplier of some specialty chemicals used in ammunition and missiles." The report also mentioned that the US domestic printed circuitboard manufacturing industry is struggling under the fierce competition in the global market. "Since2000, the US global production share has dropped by70%." Today, Asia produces 90% of the world'sprinted circuit boards, half of which are concentrated in China. As the advanced printed circuit board manufacturing industry migrates overseas, the United States may lose control of the source of electronic product production.
It can be seen from the above main contents. In addition to the printed circuit board (chip door) that promoted the stock price of Lenovo Group during the National Day, it also highlighted the issue of China's rare earth threat. This issue has been repeated for several years, but the author believes that this is the pride of China and the oil in the Middle East. China has rare earths. We have to take the initiative to get security. The threat of re-selling the United States is nothing more than pressure on China to increase exports, but in the past we all sold it and we did not see them thank you. Therefore, the author believes that the strengthening of China's rare earth management is in line with national interests. For the United States to speculate on the rare earth threat theory, in the window of economic friction, it is a bit of a prestige. In the world of true and false card houses, or they are more to use this to talk more weight, increase the suppression of China, but also to obtain more power from their home country.
But no matter what, there is no need for any purpose. Seeing this threat theory, as China, I am happy inside. For the stock market, related conceptstocks are also happy. Of course, this discussion is limited, and it is better to follow up on it. Itis not appropriate to be overly optimistic. It is advisable to follow up the relevant dynamic situation first and then adjust the corresponding operation strategy.