China Just Hit Back — The Rare Earth Power Move
- Tung Lam Vuong
- Oct 16
- 2 min read
Markets are buzzing after China dropped a bombshell — new restrictions on the export of rare earth materials and magnets, the stuff that powers everything from EVs to fighter jets.
And here’s the question we’re all asking: What does this mean for us traders — and where are the markets heading next? Let’s break it down.
The Political Play
The global power shift is happening right before our eyes. China — once the factory of the world — is now flexing as a geopolitical powerhouse.
This isn’t just about manufacturing dominance anymore. Beijing’s also moving to undermine the U.S. dollar, building new trade alliances through BRICS and positioning a new global currency alternative.
Make no mistake — this is a slow-motion takeover of economic power.
Trump's Trade Wars
The trade war between the U.S. and China never really ended — it just evolved.
China’s latest move? Weaponizing its control over rare earths, the critical minerals America depends on.
Back in late 2023, China banned exports of rare earth extraction tech.Now, they’ve gone further — tightening export controls entirely. Translation? They’re cutting off the oxygen supply.
The objective is simple: disarm the opponent without firing a shot.
What Happens Next
The U.S. is dangerously reliant on China for rare earths. And the only alternative source, Myanmar, is in chaos — with its military junta being quietly backed by (you guessed it) China and Russia.
So what happens when supply shrinks?
Basic economics: price goes up.
That leaves us with two possible scenarios:
Trump backs down and plays by Beijing’s rules.
Rare earth prices explode, driving up costs across industries and shaking the global economy.
Which outcome sounds more like Trump to you?
Final Thoughts
Calling the recent panic “market manipulation” by Trump might sound like an exaggeration, but in truth, his rhetoric has only fueled volatility and tension. The market’s reaction is justified — and traders would be wise to stay alert. Trade safe!
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