No. of Recommendations: 4
This is a war where China holds better cards than the U.S. If China turns off shipping rare earth material, our major technology companies grind to a halt. Our impeding the ability of China to profitably sell in the US certainly hurts them, but we are not the only market in the world. In addition, forcing US consumers to pay more (or do without) for products normally purchased from Chinese manufacturers will, by definition raise inflationary pressures. Restriction of advanced chip technology to China will hurt them - unless they find or create alternative channels or products.
While both parties can be substantially hurt, China can exist without our products and markets and we can't without their products.
Jeff
