China Unleashes its new Arsenal in the Trade War

China may have decided to hit back hard at the U.S by cutting exports of Rare-Earth elements

If anyone was underestimating China’s ability to hit back & take this Trade War to the next level, the announcement overnight must have come as a rude surprise. When I wrote an earlier piece about the Re-escalation of the Trade War, I had discussed the limited options China had to retaliate. The focus has always been on China dumping U.S treasuries if they are pushed too much against the Wall.

But as mentioned before countless times that it would not be a wise option as it would drag down the whole financial system with it. I don’t know if China is going to take that route, but it has been certainly pushed to the wall with the U.S banning of their tech giant Huawei & threatening to increase tariffs on all the imports from China along with banning American equipment for other Chinese tech companies. The arm twisting techniques were only gonna go so far… and they have.

Turns out Chinese were not sitting quietly. They were trying to figure out the most effective way to get back at the biggest…