Robert Wright's Nonzero The US-China Microchip-Minerals Showdown (Robert Wright & Paul Triolo)
Oct 20, 2025
Joining Robert Wright is Paul Triolo, a tech and China policy specialist at Albright Stonebridge Group. They dive into the complexities of US-China tensions over microchips and rare earth elements. Triolo explains how Trump's tariff threats were triggered by China's export rules and reveals the strategic importance of rare earths in industry and defense. He discusses the implications of the US ‘50% rule’ and how both nations' export controls have sparked a game of tit-for-tat, leading to significant global supply chain disruptions.
AI Snips
Chapters
Books
Transcript
Episode notes
Rare Earths Are Strategic Choke Points
- Rare earths like magnets are critical across EVs, semiconductors, and missile guidance systems.
- Many chips and manufacturing tools rely on multiple rare earths, making supply chains strategic vulnerabilities.
China Mirrors U.S. Export-Control Logic
- China framed its rare-earth export controls as mirroring U.S. extraterritorial chip controls.
- China asserts the right to license downstream uses when products incorporate Chinese-origin materials.
The 50% Rule Multiplies Reach Of Controls
- The U.S. '50% rule' would automatically apply entity-list restrictions to subsidiaries with 50% Chinese ownership.
- That rule could reach thousands of companies and impose heavy compliance burdens on exporters.
