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@ Peter Alexander
2025-06-09 00:43:14
China Morning Missive
The trade is simple. Chips for Rare Earths. From the stream of headlines over the past week it’s more than clear that America has an obvious dependency on rare earth minerals sourced from China. This China knows and knows well.
China, on the other hand, has been all but cut off from high performance chips. This has been the doing not just of Trump, but of Biden before him. The logic behind the export ban is clear. Thing is, you just can’t make a unilateral move if doing so puts your own economy at risk. That penny has now finally dropped for the folks in Washington.
Now we have another round of talks between America and China this time in London. It doesn’t matter what messages are conveyed by Bessent and his team. China wants access to chips and will continue to slow roll access to rare earths until said access is granted.
I’m sure that there will be much more to share in the coming days.
https://www.reuters.com/world/china/key-us-china-trade-talks-set-monday-london-2025-06-09/