🇺🇸🇨🇳 The truce that has existed for a long time between America and China regarding trade is now at risk of ending — and the reason is rare-earth metals.
What are rare-earth metals?
These are special metals that are needed for:
Mobile phones
Electric cars
Missiles and defense systems
And high-tech machines.
What is the issue?
China is the world's largest rare-earth exporter. If China stops supplying these metals to America:
American companies will face difficulties
Things may become expensive
Global trade tensions may rise
The stock market could decline.
What does weekend uncertainty mean?
This weekend, people are unsure what the next step will be:
Will China actually impose a ban?
Will America react?
What will happen when the market opens?
In short:
This news could prove dangerous for the world's business and stock markets if both countries engage in a conflict or halt trade.