China ready to hit back at U.S. with rare earths

BEIJING (Reuters) – China is ready to use rare earths to strike back in a trade war with the United States, Chinese newspapers warned on Wednesday in strongly worded commentaries on a move that would escalate tensions between the world’s two largest economies. President Xi Jinping’s visit to a rare earths plant last week had sparked speculation that China would use its dominant position as an exporter of rare earths to the United States as leverage in the trade war. Chinese trade experts say if Beijing moves forward with new restrictions on rare earth exports to the United States, it will likely follow Washington’s example and use national security as a justification.

Source: www.reuters.com