As we embark on the upcoming US-China trade war negotiations its important to understand China’s mindset entering a war of any kind.
China will not back down on the negotiations points, specifically export controls on rare earth minerals and resulting tariffs China plans to inherit as a result.
China is adopting the foreign direct product rule, to restrict China’s access to US software. Recently China published their export controls in a WPS format making it impossible for anyone outside China to open the document.
While the US has been very optimisitic about making a fair trade deal to the media, there are some undercurrents to suggest otherwise:
-Make a deal with Australia for rare earth materials as a backup if the China deal does not workout.
-Laying out the terms of the deal in public media as opposed to behind closed doors. Maybe China is not interested in having behind closed doors meeting.
-China did not seem overly thrilled about their perception of time hacking backed by irrefutable evidence.
-China re-opening discussions about invading Taiwan for their rare-earth minerals. Interesting fact, the head of Nvidia is from Taiwan and China has banned use of all Nvidia chips sold in China.
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