On June 1st, U.S. Treasury Secretary Becerra mentioned in an interview with Columbia Broadcasting System about the main issues existing in the recent Sino-U.S. trade problems, as well as the fundamental reason why Trump expressed dissatisfaction towards China a couple of days ago.
According to him, the core issue still lies in critical mineral problems, specifically the export restrictions of rare earths. Becerra believes that after the talks in Geneva between China and the U.S., China did not quickly lift the restrictions on rare earth exports to the U.S. He emphasized that this may be due to a systemic failure on China's part, or it could be for other strategic considerations. However, rare earths are crucial for a large number of high-tech companies in the U.S. and are currently a core concern for the U.S.
Moreover, Becerra also emphasized during the interview that there may soon be a high-level call between China and the U.S. After this call, it could potentially promote the resolution of the rare earth export issue. So, regarding whether there will be this call and when it will take place? It is likely to be the focus of international media in the coming week.
This actually tests how China views and handles rare earths as a strategic factor. The U.S. now seems to prioritize rare earths, even making them a premise for negotiations. For China, if it considers competition with the U.S. to be a long-term challenge, it must also consider how to effectively leverage the rare earth card. This requires more comprehensive and strategic thinking.
