Warning by Chinese State Media might Worsen the US-China Trade War
On Wednesday, Chinese state Media The People’s Daily in the commentary section, issued grave warning to the US over the US-China trade war. Following the speculations on the ban of rare earth elements export to the US and no possible resolution anywhere on the trade war, this warning might worsen the possibility of a resolution.
In the commentary section, Chinese state media and the newspaper of China’s ruling gave a sinisterly formulated warning, “Don’t say we didn’t warn you” to the US. The section further included that China will “never accept” the US’ repression on the Chinese development. This phrase has been used in the past during its conflict with India in 1962 and prior to invading Vietnam in 1978.
Restricting the export of rare earth might be the retaliation that China needs on the US-China trade war. These elements serve varied purpose in different sectors, including the defence sector. Also, these elements are not rare, as the name suggests.
Following the raise in tariffs on the imported goods of worth billions from both the sides, US President Donald Trump authorised a command on May 15, restricting the technological companies such as Huawei from purchasing essential components like computer chips from the US.
However, these chips are developed by the help of the rare earth elements, of which China is one of the major exporters.
Furthermore, on Monday, during Trump’s summit with Japanese Prime Minister Shinzo Abe, Trump referring to the US-China trade war said that he was “not ready” to broker a deal with China.
This led to the Chinese media speculating that the Chinese government might soon retaliate with restricting the export of rare earth elements.In their warning to the US government, the newspaper read, “At present, the United States completely overestimates its ability to control the global supply chain and is due to slap itself in the face when it sobers up from its happy, ignorant self-indulgence. Don’t say we didn’t warn you.”
Previously, amidst the escalating trade war, China began resorting to the measures limiting the foreign relations of Taiwan with other countries. This was seen after foreign ministry of Taiwan admitted that they had a summit with the US officials, earlier this month.
While banning the export of rare earth elements might just be retaliation to the ever-escalating US-China trade war, it certainly would be illegal according to the judgment by WTO. Also, not willing to find a common ground and instead threatening the other party might worsen the negotiations and adversely affect the trade market globally.
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