Perhaps last week's U.S.-China summit was a "success" in the narrow sense that the Americans were not humiliated. Well, maybe not. Officials, analysts, reporters, and observers have been providing widespread commentary on how subservient and obsequious the U.S. President was to the Chinese dictator Xi. Ugh!
The critically important subject of rare earth minerals (17 crucial metals) hovered over the summit. These raw materials are central components in a vast array of products from electronics, EVs, and other renewable technologies to traditional automobiles and medical diagnostics. They are also indispensable to a large number of military systems including jet engines, guided missiles, radar, and sonar. In short, modern life is not possible without them.
The U.S. suffers a massive strategic vulnerability here, however, since China accounts for two-thirds of the world's rare-earth mining, 85 percent of its refining, and 90 percent of its production. While the U.S. has its head up its collective ass in ridiculous, hate-filled "culture wars," the Chinese dominate the rare-earth market. This is preposterously dangerous since the U.S. relies on China for 75-80 percent of its total rare-earth imports.
At a Council on Foreign Relations meeting on Friday, the Council's Heidi Crebo-Rediker said, "China has a Sword of Damocles over the world" and they are certainly not afraid to use this leverage. She said that the Chinese threatened to shut off the supply of rare-earth minerals to the U.S. when the latter imposed its foolish tariffs. The U.S. Administration instantly capitulated, of course. The U.S. subsequently made matters much worse with its war of choice in Iran, massively depleting its missile stockpiles. The cost of replenishment that relies on rare-earth minerals will be staggering and continue to add to national deficit and debt.
There was no chance that the U.S. would adroitly address this gaping vulnerability at last week's summit. None. They may not have made matters worse, but let their be no doubt that Xi will not hesitate to hold his Sword of Damocles over America's head as he pressures Washington on the Taiwan question. Many sleepless nights ahead in Taipei, for sure.
