China responds to Trump’s MAJOR tariff threat as Xi meeting on chopping block
Fox News
117,732 views • 9 months ago Save 4 min 3 min read
Video Summary
China has implemented new rare earth export controls, which are not outright bans but require licenses for eligible applications. This move comes as the White House is planning to impose an additional 100% tariff on goods from China, effective November 1st. While China claims its controls are a "legitimate measure," the US was not notified, and the decision was viewed as a surprise. The US expressed that this action by China, in an attempt to assert control over technology supply chains, will not be tolerated.
The discussion also touched upon the impact of these trade tensions on American farmers, particularly soybean producers. China has significantly reduced soybean imports, creating a crisis for US farmers who previously exported $12.6 billion in soybeans. The administration is exploring a multi-pronged approach to support these farmers, including opening new overseas markets, encouraging domestic uses for soybeans, and potentially offering direct subsidies.
Market reactions have shown some concern, with a focus on tech shares and smaller banks. However, it is noted that the measures are not yet in place, and the markets may stabilize as things settle. The US views China's actions as a violation of a prior agreement and is seeking a return to a stable trade situation.
Short Highlights
- China has imposed new rare earth export controls, stating they are a "legitimate measure" and not bans, requiring licenses for eligible applications.
- The US is preparing to implement an additional 100% tariff on Chinese goods starting November 1st, following earlier 30% tariffs.
- Rare earths are crucial for various industries, including semiconductors, electric vehicles, satellites, and defense equipment.
- US soybean exports to China have dropped from $12.6 billion to zero, prompting the administration to develop a multi-pronged support plan for affected farmers.
- The US views China's actions as a violation of a previous agreement and seeks to re-establish a stable trade environment.
Key Details
China's Rare Earth Export Controls [00:01]
- China announced new rare earth export controls.
- These controls are described as "legitimate measures," not outright export bans.
- Licenses will be granted for eligible applications.
- China had notified relevant countries and regions through bilateral export control dialogue mechanisms before announcing these measures.
The speaker interprets China's new rare earth export controls as a sign that they have "wildly overstepped the bounds of what's acceptable." Despite China's claims, the US was not notified and expressed that this action, aimed at asserting control over global technology supply chains, will not be tolerated.
Well, clearly the Chinese have realized that they have wildly overstepped the bounds of what's acceptable. Uh I can tell you that that we were not notified.
