Ahead of President-elect Donald Trump’s inauguration, China appears to be preparing for a trade war.
China plans to restrict the export of essential components for electric vehicle (EV) batteries, specifically targeting technologies that process lithium and gallium — critical minerals for electronics and batteries.
-Chuck
Meh!
ReplyDeleteAs Japan moved to conquer Southeast Asia prior to the US entry in WWII, 90% of the world’s natural rubber suddenly became unavailable to the United States. In 1940, only .4% of the rubber used by American companies was synthetic. Production of one type of synthetic rubber increased in the U.S. during the war from 3,721 tons in 1942 to 756,042 tons by 1945. By 1950, the use of synthetic rubber outpaced natural rubber. Today more than 70% of rubber production utilizes synthetic rubber. Lithium isn't scarce in the US, we simply aren't tapping the supply. It's cheaper and easier to buy it from China. The embargo will change that. https://www.sciencealert.com/a-vast-untapped-source-of-lithium-exists-in-the-us
ReplyDeleteWho would you rather have mining your lithium? Chinese children in slave labor situations, or American men and women in properly regulated operations?
Then with the EVs reflecting their actual cost (and pushing the price further past the roof) we’d see the foolishness of the idea that EVs are somehow more economical.
ReplyDeleteThere should be no need for tariffs on Chinese goods because we shouldn't be importing Chinese goods.
ReplyDelete