Sharp China with Bill Bishop The Trade War Becomes a Supply Chain War; A Global Rare Earth Emergency; Xu Qiliang and the Xi Rumor Mill
Jun 5, 2025
Tensions rise as the U.S. grapples with China's rare earth export restrictions and the implications for global industries. The discussion delves into America's reliance on these critical minerals, highlighting urgent calls for alternative sources. A focus on chip controls reveals the challenges in securing semiconductor supply chains, all while U.S.-China negotiations hang in the balance. Additionally, price wars in the electric vehicle sector signal deeper automotive industry issues, with major implications for market dynamics.
AI Snips
Chapters
Transcript
Episode notes
Supply Chain Weaponization Escalates
- The U.S. and China are locked in escalating supply chain weaponization, especially around rare earth magnets and semiconductor technologies.
- A call between Xi and Trump may be critical to prevent the relationship from spiraling further downward amid these tensions.
China’s Rare Earths Dominance
- China holds a royal flush in rare earths leverage due to deep global reliance and U.S. and allies' failure to prepare adequately.
- Efforts to reduce dependence have been insufficient for 15 years, prompting China to use this leverage aggressively now.
Mobilizing Rare Earth Alternatives
- More investment and government coordination are essential to develop alternative rare earth sources.
- This will take years and requires a wartime-level mobilization, but current distractions and price fluctuations hinder swift progress.