Trump "301" Clause May Impact the Chinese Tungsten and Molybdenum Rare Earth

According to the August 14th major media reports, U.S. President Barack Trump in the White House signed a memorandum of administrative instructions.

The US Trade Representative (USTR) Wright chize decides whether to Chinese launched the "301 clause" investigation. Clause 301 is the abbreviation of the 301st article of the trade law of the United States in 1974. It requires the president of the United States to take all appropriate and feasible actions to foreign so-called "unfair and unreasonable" trade practices. This time, the United States announced 301 terms of investigation includes Chinese suspected of infringing intellectual property and forced the American enterprise technology transfer related charges, seemed to imply that the United States would blockade the communication technology to China products and advanced technology.

If Trump insisted on bypassing the WTO framework, with its trade laws against China, so China also are likely to develop appropriate laws or regulations to protect documents, rare earth and other strategic resources of tungsten and molybdenum. 

As everyone knows, tungsten and molybdenum, rare earth is an important strategic resource. Especially the tungsten and rare earth, is an important material in industry, high-tech industry. From the beginning of 2008, China began to strictly control of rare earth, tungsten and molybdenum resources of tungsten and molybdenum, rare earth export trade, adopt more stringent export tariffs, export quotas and export quota allocation and management measures, aroused strong opposition from the United States, Japan and the European union. After many WTO lawsuits, China had to comply with WTO WTO's ruling in 2014, lifting export tariffs, export quotas and export quota management and distribution measures for rare earth and tungsten.

The content from the restart Trump insisted on "section 301" investigation is not difficult to see, Chinese in high-end science and technology development has made Americans sleepless nights. In the past, China exported products with low value-added and low profits, such as steel and textiles; the United States exported China with high value-added and high profit products, such as CPU, communication equipment, etc.. 

Now China is now catching up and starting to exert its power in the high-end field. It is not only a communications device but also aiming to narrow the gap with the United States in military products. It has recognized the international price and performance advantages and has an impact on the U.S. This may be Trump's most concern, perhaps Americans think that the earth only they have the most high-end manufacturing technology, if other countries also have, it is stolen.

In any case, China has the ability to deal with the difficulties posed by the United States, if Trump really let "301" landing, then we can also use practical action to ask him to use "ideas" to achieve the United States manufacturing.

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