How China Could Freeze The US Military

Authored by Nick Giambruno via InternationalMan.com,

Last April, President Trump launched 59 Tomahawk cruise missiles into Syria.

He was responding to an alleged chemical weapons attack by Bashar al-Assad’s Syrian government.

It was Trump’s most dramatic military move since he became president. It was also the United States’ first deliberate attack on the Syrian government.

At the exact moment he ordered the strike, Trump was also hosting China’s president, Xi Jinping, for dinner at Mar-a-Lago, Trump’s Florida resort. Xi’s wife was also there.

Trump said:

I was sitting at the table. We had finished dinner. We are now having dessert. And we had the most beautiful piece of chocolate cake that you have ever seen. And President Xi was enjoying it. And I was given the message from the generals that the ships are locked and loaded. What do you do? And we made a determination to do it. So the missiles were on the way. And I said: ‘Mr. President, let me explain something to you… we’ve just launched 59 missiles… heading toward Syria and I want you to know that.’

When asked how President Xi responded, Trump claimed: “He paused for 10 seconds and then he asked the interpreter to please say it again.”

The timing of the attack was meant to intimidate Xi and send China a message.

You see, China and Syria are allies. The Chinese give Assad’s government diplomatic, military, and economic support. China has also used its veto power at the UN several times to support Syria.

Essentially, Trump invited President Xi and his wife to his home for dinner. Then, over cake, he bombed one of Xi’s friends.

Trump hoped his hardball diplomacy would encourage China to tighten the screws on North Korea. He also wanted China to make changes in other areas like trade. He explicitly told Xi as much.

However, on closer look, Trump’s Syrian fireworks show was nothing but a hollow gesture. That’s because, without China, Trump would have no missiles to launch at anyone.

The guidance systems on the Tomahawk cruise missiles Trump launched at Syria depend on special materials that China has a near monopoly on producing. Surely, Xi knew this. Though Trump probably didn’t at the time.

And it’s not just the missiles...

If China decided to cut off these special materials, the entire US military would cease to function in short order.

Not surprisingly, Trump’s display of machismo did not impress the Chinese. Nor did it make them change their approach to North Korea.

A few months later, North Korea tested both an intercontinental ballistic missile capable of hitting the continental US and a thermonuclear weapon for the first time. Both might’ve been prevented if China had pushed harder to reign in North Korea.

So eventually—and likely soon—the US government will try to force China’s hand through trade and economic means.

Trump already threatened to cut off trade with any country that does business with North Korea. He was talking about China.

And Trump’s Secretary of the Treasury threatened to kick China out of the US dollar if it doesn’t crack down on North Korea. That would be akin to dropping a financial nuclear bomb on Beijing.

Sure, these seem like exaggerated threats. But it shows Trump’s frustration. It also means trade penalties against China could be imminent.

I think a full-blown trade war is coming soon.

But China has a big card to play. It could restrict access to that special material I just mentioned—the material used to make advanced electronic components, like the Tomahawk cruise missile guidance system.

China has used this strategy before. About six years ago, it restricted exports during a spat with Japan. The supply crunch caused a veritable mania in the special material’s industry.

Almost overnight, the price of this special material went up over 10 times.

Companies in the industry went up many times higher.

That’s why you should position yourself now.

The US and China are in the early stages of a trade war. It’s only a matter of time before it escalates. That will probably happen soon. The perilous situation with North Korea guarantees it.

The next time China restricts access to this special material, I think the industry will explode… just like it did the last time.

Even a whiff of the possibility that China could restrict supplies again would send these stocks soaring.

*  *  *

The Chinese control around 90% of this special material’s supply. But there’s one tiny company outside of China that could see huge gains if the trade war with the US materializes. The Casey Research team just released a brand-new video presentation with the urgent details. Click here to watch it now.

 

Comments

leftcoastfool IH8OBAMA Fri, 02/23/2018 - 21:09 Permalink

I agree that he's talking about Rare Earth elements.  The only serious non-Chinese producer is Lynas Corp. in Australia (pink sheets: LYSCF).  The article says the price of these "Special Materials" jumped 10x after the cruise missle attack, and "companies in the industry went up many times higher".  I don't know if that's true, but Lynas hasn't budged...

In reply to by IH8OBAMA

HardlyZero IH8OBAMA Fri, 02/23/2018 - 21:52 Permalink

Rare-earth elements are cerium (Ce), dysprosium (Dy), erbium (Er), europium (Eu), gadolinium (Gd), holmium (Ho), lanthanum (La), lutetium (Lu), neodymium (Nd), praseodymium (Pr), promethium (Pm), samarium (Sm), scandium (Sc), terbium (Tb), thulium (Tm), ytterbium (Yb) and yttrium (Y).  They are metals.

Despite their name, rare-earth elements are – with the exception of the radioactive promethium – relatively plentiful in Earth's crust, with cerium being the 25th most abundant element at 68 parts per million, or more abundant than copper.

They are 200 times greater than the crustal abundance of gold.

They are not especially rare, but they tend to occur together in nature and are difficult to separate from one another.

Common but difficult to mine...so China does difficult high-touch-labor things to do...like iPhones.

8 top Rare Earth producers:

1. China 105K MT

2. Australia 14K MT

3. Russia 3K MT

4. India 1.7K MT

5. Brazil 1.1K MT

6. Thailand 800 MT

7. Vietnam 300 MT

8. Malasia 300 MT

 

It is probably just a matter of ramping up production again in old mines.   The US used to be the largest rare earth producer...but ceded to low cost producers in Asia.

In reply to by IH8OBAMA

jin187 HardlyZero Sat, 02/24/2018 - 05:24 Permalink

Yeah, this story is pure bullshit.  The reason we import this stuff from China is because it's cheaper to have some 3rd world serf die in their 40's doing this work, instead of paying American workers, and complying with safety regulations here.  If China cut us off, we'd have production ramped up in under a year, or we'd just get it from some other Asian slavelords.  Meanwhile China would be crushed economically.  All those factories they've used to dump their cheap garbage on us will go silent, and they'll be back to rice paddies and last-gen tech soon as they go broke, which won't be very long.  The only thing that will ever stop China from selling us stuff like this is open war, which will never happen, because they need to sell us that stuff to afford a military that can actually fight us.

In reply to by HardlyZero

FoggyWorld IH8OBAMA Fri, 02/23/2018 - 22:51 Permalink

China has moved into Africa and is locking those mines up.  Just built a 2 billion dollar rail system to get the stuff to a port.  Now they are working on building a 2 billion dollar road system.

They send in people not in uniform but with the capital and management they need.  We, on the other hand, send in our military.  Not wise on our part.

In reply to by IH8OBAMA

beeeeeep FoggyWorld Sat, 02/24/2018 - 11:48 Permalink

China sends in businessmen to make business deals.  The US sends in people to try to make deals then the professional complainers here cry that we can't do business until so and so country changes their ways so we try to change their ways at which point they tell us to F off since they can do whatever they want and then just do business with China who doesn't care as long as business is handled.

In reply to by FoggyWorld

Lore TheBigCluB Fri, 02/23/2018 - 20:10 Permalink

Yeah, it seems like one of those ad spam articles that we all deplore, and anyway it's a little late to the game.  We discussed Rare Earth Metals in NK months ago. (And for the record, supply interruption drove shares DOWN, not up.)

Seizure of foreign mineral wealth is a major driver of modern US foreign policy.  The only difference this time is that NK has demonstrated long-range nuclear capability in the interest of deterrence.

Assuming that the dinner anecdote is described accurately, then the POTUS behaved very ignorantly, and XI showed admirable restraint.

Moreover, the tomahawk missile launch was another embarrassment, since most of the missiles reportedly landed in a barren piece of dirt at the end of a runway.  The whole thing was bizarre...

In reply to by TheBigCluB

Trader200K Stuck on Zero Fri, 02/23/2018 - 22:21 Permalink

Imagine the 'blank bug' being triggered on all those 'critical' screens 30 seconds before an attack. 

Who needs sophisticated hacks if one can simply make the enemy go blind at the worst possible moment? Remember the USS Donald Cook incident?

The General makes many plans in his temple before engaging the enemy and knows the victory is accomplished before the attack begins. 

Our boys die for the Racket. 

In reply to by Stuck on Zero