“Don’t say we didn’t warn you” – China’s Response to the United States in the Trade War

“We advise the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you!” the People’s Daily said in a commentary.

The phrase “Don’t say we didn’t warn you ” has been used only twice in history by the People’s Daily – in 1962 before the border war between China and India and before the Sino-Vietnamese war in 1979.

China has threatened to cut rare earth metals as a countermeasure in the escalating the trade war. The materials are essential for the production of iPhones, electric vehicles and advanced precision weapons.

China’s biggest newspaper has explicitly warned the United States on Wednesday that China will cut rare earth metals as a countermeasure in the escalating trade fight, using an expression used only twice in history, both of which led to full on wars.

“We advise the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests,” the People’s Daily said in a commentary titled “United States, don’t underestimate China’s ability to strike back.” The newspaper is the official publication of the Communist Party of China.

” Will rare earths become a counter weapon for China to hit back against the pressure the United States has put on for no reason at all? The answer is no mystery,” added the paper.

The trade conflict between the world’s two largest economies escalated rapidly this month as the two sides imposed a tariff on billions of dollars of their respective goods. China threatened to curb sales of rare earth metals in the United States came after President Donald Trump listed Huawei, the Chinese telecom giant, on a blacklist, cutting off chip makers and Internet companies.

Speculation about China’s recovery appeared for the first time when Chinese President Xi Jinping visited rare mining and processing facilities in Jiangxi Province during a local tour last week. A Chinese official warned on Tuesday that products made of materials should not be used against China’s development, which was seen as a veiled threat to the United States and the technology industry.

Rare earth materials in China are essential for the production of iPhones, electric cars and advanced precision weapons, although imports are a relatively small part of the $420 billion US goods deficit.

The Chinese tabloid newspaper Global Times said on Tuesday that China could play the “rare earths card” and was “seriously considering” the move.

The stock market has been a huge success amidst the mutual strategies between the US and China as stocks prepare to record their first negative month of the year. Standard & Poor’s has lost nearly 6% this month.

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