China warns trade war could get even worse

The phrase “Don’t say we didn’t warn you” was only used two other times in history by the People’s Daily — in 1962 before China’s border war with India and ahead of the 1979 China-Vietnam War.

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Will US-China trade war be the end of America?
Will US-China trade war be the end of America?

The biggest newspaper in China explicitly warned the U.S. on Wednesday that China would cut off rare earth minerals as a countermeasure in the escalated trade battle, using an expression the publication has only used twice in history, both of which resulted in full-on wars and in both cases China was victorious.

“We advise the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you!” the People’s Daily said in a commentary titled “United States, don’t underestimate China’s ability to strike back.” The publication is the official newspaper of the Communist Party of China.

The trade war between the two of the world’s largest economies escalated quickly this month with both sides slapping tariffs on hundreds of billions of dollars worth of each other’s goods. China’s threat to restrict or completely forbid rare earth mineral sales to the U.S. came after President Donald Trump blacklisted Chinese telecom giant Huawei, which resulted in many chipmakers and internet companies completely cutting ties with the company.

China’s rare earth materials are crucial to the production of iPhones, electric vehicles such as Tesla and advanced precision weapons. Although the imports are a relatively small part of the $420 billion U.S. goods deficit with, if the sales stop, the above mentioned products will definitely be harder to make, and Apple is already facing countless issues since its founder, Steve Jobs, passed away in 2011.

Apple's profits could plunge more than a quarter if China bans rare minerals used in iPhone production, analyst says
Apple’s profits could plunge more than a quarter if China bans rare minerals used in iPhone production, analyst says

The Chinese tabloid Global Times also said that China can play the “rare earths card” and that it’s “seriously considering” the move.

The stock market took a big hit with stocks poised to post their first negative month of the year. The S&P 500 has lost nearly 6% this month.

3 COMMENTS

  1. China will probably win this. Or it will be a stalemate. Either way, this can’t possibly be good for our economy.

  2. This is again going to leave very big consequence for Europe. Europe always suffers most when there is any kind of conflict between East and West…

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