RTX-branded aerospace hangar with jet engine, fighter aircraft, and radar array symbolizing defense demand and backlog. Key Points RTX’s beat-and-raise quarter reinforced confidence in commercial and defense demand across its major segments. A $260 billion backlog suggests strong multi-year visibility if execution stays on track. Shares could consolidate or retest support before a breakout, with institutional selling a potential headwind. Interested in RTX Corporation? Here are five stocks we like bet ...

Core Viewpoint - The trade conflict between the U.S. and China has escalated, with China leveraging its dominance in rare earth elements to target critical U.S. military capabilities, revealing a deeper struggle for global technological supremacy [1][3][8] Group 1: Impact on U.S. Military - China's export restrictions on seven key rare earth elements directly threaten U.S. military technology development, particularly affecting the F-47 sixth-generation fighter jet and electronic warfare systems [3][6] - The U.S. currently relies on China for 90% of its rare earth supply, with domestic production only accounting for 15% of global output, highlighting a significant vulnerability in the U.S. defense supply chain [3][6] - The urgency in Washington's response, including invoking the Defense Production Act and seeking resources in Greenland and Ukraine, underscores the strategic shortfalls in U.S. military supply chains [3][6] Group 2: Global Supply Chain Dynamics - China's export controls are not limited to the U.S. but apply globally, complicating the supply chain for all nations and creating a "suspicion chain" regarding rare earth procurement [6][8] - The ambiguity in China's strategy allows it to maintain a moral high ground while inducing anxiety in U.S. supply chains, as defense contractors cannot easily identify military-grade rare earths [6][8] - The global interdependence on rare earths is illustrated by the irony that even if U.S. mines become operational, the processing still relies on Chinese technology, emphasizing the complexity of the global supply chain [8] Group 3: Future Implications - The ongoing rare earth conflict is fundamentally a battle for future industrial dominance, as advancements in military technology increasingly depend on these materials [8] - The competition is shifting from traditional military assets to control over critical materials, with the potential to redefine modern warfare [8] - The U.S. faces a daunting challenge in countering China's three-decade lead in rare earth production and processing, indicating a significant gap in industrial capabilities [8]