"Authored by Tim Daiss via OilPrice.com,
Oil markets remain under pressure amid economic downturn worries due to the U.S.-China trade war that shows no sign of ending. Ongoing trade war tensions are causing concern across financial markets as well. The S&P 500 has dropped over 5 percent from its recent record highs, while some analysts claim that there is even more downside potential as markets have barely priced the effects of China’s potential response in the trade war.
Some possible retaliatory moves by China, in addition to its recent tariff increase on $60 bn worth of U.S. goods, include restricting rare earth exports to the U.S., a move that would hurt many U.S. manufacturers since China holds roughly 71 percent of the global market share. Anop-ed in the Beijing-based Global Times newspaper, which often expresses the views of the Chinese Communist Party (CCP), said on Wednesday that the U.S. will rue forcing China's hand on rare earth materials. An official of China's National Development and Reform Commission (NDRC) said the day before that China will not tolerate foreign high-tech products made from rare earths produced in China being used to contain and suppress China's development.
"If anyone wants to use the products made from rare earths exported by China to contain and suppress the development of China, I think the people of the old revolutionary base area in the south of Jiangxi Province and the people of China will not be happy," said the official.
According to the Global Times, he made the remarks when asked by reporters if China will use rare earths as a countermeasure against U.S. trade moves to contain China. Obviously, the report added, the response is a strong signal from China to the U.S..."
at https://www.zerohedge.com/news/2019-05-30/chinas-biggest-weapon-trade-war
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