The weapon that China must meet the penalties imposed on Huawei

Chinese President Xi Jinping on Monday paid a visit to a rare earth plant, which, in the middle of a trade war with Washington, fears a blockade of exports of these essential metals to the United States. . The trade war between Washington and Beijing has burned a new stage with the technological impulse with Huawei, the Chinese smartphone maker, whose existence is threatened by the embargo on US electronic "chips" and by Google's decision to sever ties with this group.

But just as Beijing depends on US technology, Washington, like the rest of the world, is heavily dependent on some Chinese exports, such as rare earths. The Asian giant produces 90% of the world's rare earths, a set of 17 key metals used in the manufacture of advanced technology products, such as smart phones, plasma screens or electronic vehicles. Behind Xi Jinping's Monday visit, which had a large audience in the official press, there was a message: "China has the means to put pressure" in the United States, say badysts firm Trivium China.

"Rare earths are an important strategic resource," said Xi Jinping, reported Wednesday the Xinhua official news agency. "Only in the case where we have an independent technology, we can be invincible," said the Chinese president, which seemed to link it to the difficulties of Huawei.

This show of force of the Chinese government "is not a coincidence," confirmed Sinologist Li Mingjiang of the S. Rajaratnam School of International Studies in Singapore. "It is clear that the Chinese government is currently considering using the ban on rare earth exports as a political weapon against the United States," he added. "This could be considered a major escalation" by Washington, acknowledged this badyst.

"He does not want to add fuel to the fire"
Rare earths are "strategic metals" because of their electromagnetic properties, fundamental to the technology industry. China therefore has a "strategic weapon", according to the annual report on Cyclope raw materials, and will not hesitate to use it. In 2010, in retaliation for a territorial dispute, the Chinese authorities have already halted rare earth exports to Japan.

Japanese technology companies, highly dependent on exports of neighboring energy, have been hit hard. To preserve these resources, Beijing has already established export quotas for rare earths. The United States, the European Union and Japan brought this practice before the World Trade Organization (WTO), which proved them right. However, the production quotas established with the argument of environmental protection are still in force, because the manufacture of these metals is very polluting.

"We can not exclude China from the growing pressure exerted on the United States by environmental problems," said Kokichiro Mio, China specialist at the Japanese research institute NLI. "A threat" that would remain only in this and would not materialize, says this specialist, as far as Beijing "does not want to fuel the fire."

Exempted from the rate increase
A rare earth seizure "would affect a number of strategic industries" in the United States, such as robotics, computer science, aeronautics or medical lasers, says badyst David Lennox from Fat Prophets. Although the impact is not "immediate", it would have repercussions because "there is no real substitute for rare earths", he told AFP.

"China does not want to directly conflict with the United States," but the rare earths are used to "exert psychological pressure," said political badyst Chen Daoyin of Shanghai. The Asian giant is not only its main producer, but has also invested in recent years in many rare earths out of China, for example in the field of Kvanefjeld in Greenland, considered the second largest in the world, according to the report Cyclops. Reflecting US vulnerability, the rare earths, as well as drugs, will be exempted from the increase in tariffs that Washington will impose on almost all Chinese products.

"Difficult situations"

For his part, President Xi Jinping called on the Chinese people today to prepare for "a series of difficult situations" and to face "significant risks and challenges", at a time when the trade war is over. 39 aggravates with the United States, according to statements released by the Xinhua State Agency. "Our country is still in a period of significant strategic development opportunities but the international situation is becoming more complicated," said the Chinese head of state during a visit to the province. from Jiangxi, in the south of the country.

Xi stressed that the nation should "be aware of the complex and long-term nature of various adverse factors", both internal and external, and prepare appropriately for "difficult situations". The Chinese president has on other occasions raised the challenges facing the country, but his remarks are particularly important at a time when the trade war with the United States has intensified and has become a dispute over technological supremacy. . The US President Donald Trump 's national emergency order, which bars US companies from trading with foreign companies spying on the country, could have serious consequences for China' s Huawei technology giant.

Companies such as Google have announced that they will stop providing it and allow Huawei to use its Android operating system with which its mobile phones are operated. US processor companies Intel, Qualcomm, Xilinx and Broadcom, Infineon Technologies in Germany and US chip makers Micron Technology and Western Digital will also cease supplying Huawei according to Trump's order, which could delay plans for 5G network adoption worldwide.

Huawei's chief financial officer, Meng Wanzhou, is also released on bail in Canada after being arrested in that country at the request of the United States, who accused Chinese society of violating the sanctions imposed on Iran. Huawei's founder and executive director, Ren Zhengfei, has tried to downplay the importance of the restrictions imposed by the United States and that these will affect the deployment of 5G technology, in which the Chinese company claims that it will surpbad "its competitors in two or three years". . According to Ren, the company was already ready to face the restriction: "We can make chips as good as those made by American companies, although that does not mean we will not buy theirs," did he declare.