Only last month, the leaders of China and the US had an apparently friendly few days together in Beijing. Lots of smiles and words of hope. But the reality is very different, and this week saw a couple of developments that emphasize just how difficult the relationship is becoming, with consequences that bear a lot of thought.
First came a report from the US-China business council saying that 75% of US companies surveyed are finding it difficult to obtain rare earths from China and are now looking for alternative sources. China is the world’s dominant supplier of rare earth minerals, which are crucial for making a wide range of things, including hi-tech components needed to produce smart phones, weapons, batteries and semi-conductors. By limiting access, China is forcing them to find alternatives, and alternatives exist in Brazil, Australia, Greenland and under the sea, but developing the mines, building the refineries… it doesn’t happen overnight. That’s the window of opportunity the Center wants to exploit.
Meanwhile, the US added several top China tech giants to the list of companies it believes are aiding the Chinese military, including BYD, Alibaba, Baidu and the robot maker Unitree. If Trump was not now the US President … who knows. But he is, and this is the other window of opportunity Those in Command are quite rightly looking to make use of. The US domestically is set for more than two years of chaos domestically, with all sorts of repercussions in other parts of the world, all of which helps the Middle Kingdom. This is a situation Washington should be truly focused on, but they are instead distracted by Hormuz, Cuba and immigration.
We sit and watch. This weekend and beyond.