markets tumble on china vow to choke vital us metal supply
On Wednesday, the Sino-US trade war escalated sharply as Beijing threatened to cut rare metal exports critical to the US technology, automotive and defense industries. It will be retaliation for President Donald Trump blacklisting the phone giant Huawei and cutting off the supply of computer chips it needs to produce its products. The market is fearful of the news, and traders are worried that the trade war is out of control. Stock markets across Europe plunged. London\'s FTSE 100 index fell more than 1%, or 94. 90 points at 7174. 05. Mining listed companies in London in particular. China provides about 80% of the U. S. Supply of rare earths, such as cobalt needed to make jet engines. From electronic equipment to military equipment to magnets, 17 rare earth chemical elements are used in everything. Fiona Cincotta, of the City Index, said: \"Chinese exports may tighten, which will not only lead to soaring costs for US specialty metals, but may also be positive However, from an investment perspective, it is possible to increase the share price of unlisted companies. Chinese rare earth producer. Economists worry that trade wars between the two big economies will affect global growth. An editorial in the People\'s Daily, the official newspaper of the ruling Communist Party of China, reads: \"The United States, do not underestimate China\'s ability to fight back. The article said: \"Will rare earth become anti-Rare Earth ? \" The pressure on China to fight back, the United States is no reason? The answer is not mysterious. \"There is no doubt that the United States wants to use China\'s exports of rare earth products to counter and suppress China\'s development. The Chinese people will never accept this! The newspaper added. Huawei said today that its move to blacklist trade \"set a dangerous precedent\" that would harm billions of consumers. It poses a legal challenge to the ban. Song Liuping, a Huawei lawyer, said: \"The US government has not provided any evidence that Huawei has a security threat. No guns, no smoke. Only speculation. The United States can look for rare earth metals from Australia or Africa.