US-China Relations

China’s Coercive Use of Rare Earths Will Weaken Its Monopoly: Former IMF Chief Economist

Kenneth Rogoff said China is showing it has bargaining power and Trump’s current response may not be enough to deter the CCP.
China’s Coercive Use of Rare Earths Will Weaken Its Monopoly: Former IMF Chief Economist
Maurits C. Boas Chair of International Economics at Harvard University Kenneth Rogoff speaks during a panel discussion on “Monetary Policy Challenges in a Global Economy” at the 24th Jacques Polak Annual Research Conference at the IMF headquarters in Washington, DC, on Nov. 8, 2023. The IMP hosted the conference to discuss “Global Interdependence.” Alex Wong/Getty Images
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News Analysis

Just as the U.S.–China trade war appeared to be easing, China suddenly imposed its toughest restrictions on rare earths, shocking the Trump administration and global markets. However, the former chief economist of the International Monetary Fund said that in its attempt to negotiate better trade terms with the United States, Beijing is attempting to emulate President Donald Trump’s negotiating style. However, he said that in this trade war, China’s use of rare earths as a trump card will severely weaken its monopoly position as countries work to find other sources.

Jenny Li
Jenny Li
Author
Jenny Li has contributed to The Epoch Times since 2010. She has reported on Chinese politics, economics, human rights issues, and U.S.-China relations. She has extensively interviewed Chinese scholars, economists, lawyers, and rights activists in China and overseas.