Core Viewpoint - The article discusses the ongoing strategic "temperature control war" between China and the United States, highlighting the complexities and underlying tensions in their economic relationship, rather than a simple narrative of reconciliation [1][11]. Group 1: Trade Dynamics - In June, China's rare earth exports to the U.S. surged by 660%, but this figure is misleading as it reflects a strategic maneuver rather than a genuine resolution of trade issues [1][3]. - China's export of seven categories of medium and heavy rare earths was restricted in April and May, leading to a drastic drop in exports to only 46 tons in May, which was insufficient for U.S. industrial needs [3][11]. - The June export volume rebounded to 353 tons, but this still represents a significant decrease compared to normal trade levels from the previous year, indicating that the U.S. remains in a precarious position regarding its industrial supply chain [3][11]. Group 2: Strategic Supply Management - The U.S. is employing a "limited supply" strategy with Nvidia's H20 chip, which is designed to maintain a balance of dependency while avoiding a complete severance of ties that could lead to stronger competition from China [6][10]. - This strategy is akin to "hunger marketing," where the U.S. government recognizes the short-term necessity of high-end AI chips for China, thus opting for a controlled supply rather than a total embargo [6][10]. - The approach aims to prolong China's reliance on U.S. technology while simultaneously stifling its ability to develop independent alternatives [10][11]. Group 3: Long-term Implications - The relationship between China and the U.S. has evolved into a "mutual dependency" that complicates any attempts to completely undermine the other side without inflicting significant self-harm [11][14]. - The 660% increase in exports serves as a barometer of the ongoing "temperature control war," indicating that both nations are feeling pressure but are not yet at a breaking point [13][14]. - The focus of the competition has shifted from outright separation to finding a balance that allows both sides to exert pressure while managing their own vulnerabilities [14].