To end Huawei's veto, China could be using rare earth production to pressure the United States to cease hostilities.
The arrival of Donald Trump as president of the United States is creating discomfort globally, to say the least. It started by confronting Mexico, threatening North Korea, and now it has started a trade war with China. Attack Huawei And vetoing it could end up costing Trump, who is being turned upside down by American companies. Nike, Adidas, Convers and nearly 160 other shoe brands have said that this trade war will be paid for by users. China has decided to scramble and attack and for this it has done so with a fundamental element in electronics: rare earths.
China uses rare earths to launch a counterattack to the United States over the Huawei veto
A few days ago, Trump granted a 90-day veto postponement. When this probation was announced, it was said that it was because of Chinese pressure. To put pressure, it seems that they threatened to stop importing rare earths such as europium, gadolinium and neodymium. Hopefully neodymium will sound to you, as they are highly powerful magnets. These elements are essential to manufacture photovoltaic panels, for wind energy and for smartphones. They are so named because these types of materials account for only 0.02% of the entire earth's crust.
Some very important materials that can be a very important weapon in this war. Having reserves of these materials is essential to continue building products. Currently the countries with rare earths are Brazil, India, South Africa, China, Canada, Australia and the United States. The largest product today is China, which can produce between 80-95 percent of all the materials mentioned.
The Chinese government also has a tender for exploitation in Kvanefjekd, Greenland, which would be the second largest in the world. It could be the case that the trade war between China and the United States ends up being governed by these materials. If China turns off the tap on the United States, those who would have a hard time would be American companies, and all because of the Huawei veto.
