Why there is a sudden unrestricted warfare on rare earth between US and China on the eve of APEC sideline Trump/Xi meeting? How comes it? Why don’t they wait for a few weeks more as they have already waited for several months?
It is because of Pasni!
This Pakistan fishery port will be funded by US to become a port of exporting rare earth and antimony which can be used for battery and fuel for missile. Pasni is just 17 miles away from the Chinese funded port Gwadar, which is a main port in One Belt, One Road project. It is also just 100 miles away from Iran. That means US is extending their power to Arabian Sea, which shocked China and thus cannot wait any more.
Do you still remember there was a short war between Pakistan and India in early May? Pakistan said they shot down the European fighter Rafale by Chinese fighters. The manufacturer disclosed the picture was taken by a news concerning the accident of the plane years ago, BBC found the video was taken out of the video game Dragon Battle, but little pink in China still celebrate nation wide furiously, for Pakistan and China are traditional good friends. Now does it mean Pakistan would betray China and cling to US only? No! No! No! What they really want are benefits from both sides, so that in their future development, they have stronger negotiation power no matter against China or US. In the recent tariff war, the tariff levied on Pakistan is just 19%, among the lowest group.
When General Syed Asim Munir, the Chief of Army Staff of Pakistan visited White House, Donald Trump invited him to have lunch which is quite rare. He is not a president but can have lunch with US president! Just see Zelensky of Ukraine, he was insulted by Trump even he is a real president.
It shows that Trump is quite happy to extend his power to Arabian Sea and get rid of part of the control of China on rare earth.
But now the tension is easier, after Trump levied 100%, China had not behaved as before at once levy counter tariff of another 100% and blame US as picking up a stone to hit his own feet, responsibility is not on our side ……, no warrior wolf behavior. Why? It is said that Trump planned to have sanction on supply of Boeing parts, if so, all 1900 Boeing plane flying in China will be grounded in 3-6 months. Of course, China will have a lot of method to let both sides burnt together. But neither of them could afford so.
How about the Beaver Moon? It would bring about sudden emotion and will reach the peak, but will also set free from old habits. Just see how China gave up the old habit of asking US to correct your wrong deeds at once…… and Trump expresses everything is negotiable. Beaver Moon is also to prepare foodstuff for winter…… that means US is increasing the inventory of rare earth and China increasing the inventory of chips.
So, is there any exception in this year? Aged traders always said there would not be 2 golden pits in a single year. Very simple, then the second time comes, people would not cut loss and buy back at once so the low would not be lower than the first time. But if you have already locked up the stocks purchase from March to August, you need not to worry about the ups and downs thereof. So, is this golden pit a false drop? We better to back to fundamental analysis? We have to find out whether this AI trend is a bubble, or real development in Stargate, Mars Landing, Full Self Driving and Humanoid robots. Another peak will be seen in summer of 2026.