Both sides are making a big mistake as trying to

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Both sides are making a big mistake, as trying to score quick points for their own domestic political audiences is a big error. Now is the time to get both sides in a room, lock the doors, and work towards a deal that is fair to everyone. 24 Rare Earth Metals The US is almost entirely dependent on China specifically for rare earth metals that have been processed into a final and usable form. These metals are not actual- ly rare, however, they are difficult to mine and process. They play crucial roles in everything from smart phones to electric car motors, hard drives, wind turbines, military radar, smart bombs, laser guidance and more. If China clamps down on these exports, it would create a panic type situation into America's supply chain for high tech consumer products and military's advanced weapons systems. China has shown its willingness to use its advantage in rare earth metals earlier in 2009. China did cut off its rare metal exports to Japan entirely after an international incident involving a collision between two ships. This was eventually resolved at WTO. 25 America has plenty of rare earth deposits. The problem is maintaining a domestic industry to mine the minerals and transform them into final components. Colorado - based Molycorp started mining rare earths at Mountain Pass. But, it struggled to turn a profit, and eventually went bankrupt. In the middle of last year, a bankrupt- cy proceeding sold the mine to another China involved consortium. The Chinese partner in the consortium, Shenghe, will have exclusive sales rights to the mined product! Is it War on Innovation? The recent National Security Strategy 2017 of the US claims that in order to compensate for its own systemic weakness stemming from a state - driven 24. Harry J. Kazianis, A US - China Trade War is Coming, but Here's How to Stop It ”, Fox News, April 6, 2018 available at: - china - trade - war - is - coming - but - heres - how - to - stop - it.html 25. Jeff Spross, How China Can Win a Trade War in 1 Move ”, April 6, 2018, available at: - china - win - trade - war - 1 - move
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US - CHINA Trade War: Analyses of Deeper Nuances and Wider Implications 24 economic model, China steals proprietary technology and early stage ideas from the US private sector, thereby undercutting American prosperity and hijacking the innovation of free societies. As per Beijing, China faces a unique set of challenges and has successfully adopted a strategy of socialist modernisation to speed its development while preserving its independence. To the extent Western companies transfer technology to Chinese partners, they do so voluntarily in pursuit of enrichment within Chinese borders. The truth may lie somewhere in between.
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