Sou Hu Cai Jing·2025-08-14 10:18Group 1 - The core issue of the renewed US-China trade tensions is centered around rare earth elements, with China controlling approximately 70% of global mining and 90% of refining capabilities [1][3] - The US is facing immense pressure from its companies due to tight inventories of rare earth materials, with many firms only having 40 to 60 days of supply left [3][4] - A significant turning point occurred on April 4, 2024, when China announced new export regulations for seven critical rare earth elements, which heightened global supply chain tensions [3][4] Group 2 - On May 10, 2024, the US and China reached a preliminary agreement to mutually lower some tariffs, but no substantial concessions regarding rare earth exports were made [4][6] - By June 2024, US rare earth inventories were nearly depleted, leading to production halts in major companies like General Motors and Ford due to a lack of essential components [8][10] - The US's dependence on rare earths is critical, especially in defense and energy sectors, with a report indicating that a sudden supply disruption would severely impact these industries [3][8] Group 3 - The US has been tightening restrictions on China's semiconductor industry, which has led to retaliatory measures from China regarding rare earth exports [10][12] - As of June 2024, China approved more export licenses for rare earths, particularly for US electronic companies, but prices remained high and supply chains continued to face pressure [10][12] - The ongoing trade friction is expected to persist unless the US demonstrates genuine willingness to negotiate and ease restrictions on Chinese companies [12][14]