Huawei VS United States : the Empire (in the middle), counter-attack

The american offensive against the chinese giant Huawei will not leave China marble, who want to retaliate against the United States. Thus, China could well restrict access to its rare earths, mainly concentrated in the country and contains the minerals necessary to the manufacture of high-tech products. But this is not all. Donald Trump could also get caught in his own trap, then, that China intends to adopt a similar position in blacklistant some american companies.

They are called praseodymium, dysprosium, or ytterbium, and these are not experimental drugs that are all the rage in New Mexico, but many of the ” rare earths “, the minerals essential to the manufacturing of our smartphones and other high-tech products. If we already knew that the manufacturing of these products was mainly concentrated in China, it is also important to know that the minerals used to produce are also present. China to focus nearly 80% of the rare earths when 90% of them are refined in factories in china.

In the guise of threat, the chinese President, Xi Jinping, had visited one of the biggest factories for the extraction and refining of rare earths, in the aftermath of Google’s decision to deprive Huawei Android. The objective was of course to spread out its resources and indicate a half-word in the United States that China has arguments to put forward to deprive american companies of items essential to the manufacturing of their products.

For all that, deprive the United States of rare earth does not seem to be the right solution for China. In the short term, limit the access to rare earths would put the american companies in the lurch, but it would push also the United States to provide new solutions to obtain, or even to accelerate the work to pass. If the rare earths are now largely concentrated in China, and they are present everywhere, but their extraction is extremely polluting, which is why many countries have simply stopped the exploit.

In addition, it would be necessary for China to prohibit access to its rare earths to the whole world to actually assoiffer the american companies, because they may very well buy the ores to the Europeans, who themselves are purchased in China, for example. But a ban for all does not correspond with the image of the country of Xi Jinping who wants to go for the guarantor of free trade in this trade war.

Such is taken who believed to take. It is in any case one of the scenarios that are looming on the horizon. In response to the us decision to put Huawei on the blacklist, China may also draw up such a list of american companies. On the same principle, these foreign companies would be placed on black list because they were judged likely to endanger the interests of chinese.

This black list chinese could regroup ” foreign companies, organizations or individuals who do not comply with the rules of the market, the spirit of the contracts and that clog or block the supply of chinese enterprises for non-commercial reasons, and which carry an injury severe for the rights and interests of chinese companies “ said the chinese Commerce minister, Gao Feng.

Sanctions, the chinese could well be dramatic for us companies such as Apple, whose iPhone is still very popular in China. But this is not all, because many of the firms could also suffer, as the textile industry, including brands such as Nike and Levi’s, or even Hollywood, who realizes substantial revenue to each movie in the middle kingdom.

One thing is for sure, we are only at the beginning of a trade war of a magnitude to come, and the case of Huawei appears to have been the trigger. The meeting between Donald Trump and Xi Jinping scheduled for the end of the month in Japan on the occasion of the G20 could be the opportunity to find a way out of a situation that has been escalating and gaining momentum every day.