The Sino-US trade negotiations held in London have attracted much attention from the world. On the first day of the talks, the two sides fought for more than six hours, and the two sides agreed to continue the talks the next day. According to Bloomberg, US President Trump told reporters at the White House on Monday: He said, "It is not easy to negotiate with China." This is not a casual talk.
Why did Trump call it "difficult"? There are many reasons:
China is the global "miner" of rare earths, and controls 90% of the heavy rare earth production. Even the only California Mountain Pass rare earth mine in the United States has to be sent to China for refining. China's rare earth export control, American companies immediately complained, and the shortage of magnets almost shut down factories. This trick is really cruel!
The United States wants to control chips, especially high-end Nvidia H2O AI "magic weapon", which is their lifeblood. What about China? Resist rare earths and force the United States to release technology exports. Unfortunately, the United States refuses to put high-end chips, which makes the negotiations more gunpowder.
China wants to exchange rare earths for the United States to loosen chip control, but the United States is determined to protect high-end technology, which is a big hurdle. Tariff reduction and control liberalization are the key. The US only wants to "small favors", but China wants "hard goods". Since the Geneva talks, the United States has continued to block chips, sanctions on Huawei and attacked Chinese students, making the negotiations even more twists and turns.
The rare earth card finally made the United States suffer. Automobile companies stopped production and manufacturing shouted for help, and Trump's "not easy to talk about" is the best proof. In the past, the United States often imposed unilateral sanctions, and we could only bear it; now, we use rare earths to counterattack and force the United States back to the negotiating table. This is not a simple economic war, but a symbol of a huge increase in confidence in our country!
But we must also be calm. Exports to the United States are declining, and the downward pressure on the economy is not small. The US AI technology is booming, and high-end chips are not let go. It is difficult to win by relying on rare earths alone. Therefore, we have to take a multi-pronged approach: consolidate the advantages of rare earths, quickly build domestic refineries; explore the European and African markets, rely less on the United States; unite allies and build a rare earth "international alliance". In this way, we can gain a foothold in the new trade pattern!
The London negotiations will definitely have a result - this is a foregone conclusion! But how good is it? It depends on how much "real money" the United States has taken out. Judging from Geneva's "suspension + exemption" routine, this time it may still be done step by step, build a permanent mechanism, and partially relax the regulation. The key is that we have to exchange rare earths for real technology, and don't let the United States give only a "blank check".
In short, China is no longer the good guy who "camerates with the United States"! Rare earths show their swords, and we are full of confidence at the negotiating table. In the future, we will rely on technical independence and international cooperation to play this ace out of the flower and blind the world!
