Gordon Chang

That looks like anticipation of a trade war with the United States or anticipation of very high tariffs. When we go back to 2018, when Trump imposed his Section 301 tariffs, China picked up somewhere between 75% to 81% of the cost of those impositions. And this time they have even more incentive to do that.

So I think that this move to force down the value of the currency is a real indication that they're getting ready, as you say, setting the table. So it's not just geopolitically, it's also from an economic point of view as well.

So I think that this move to force down the value of the currency is a real indication that they're getting ready, as you say, setting the table. So it's not just geopolitically, it's also from an economic point of view as well.

So I think that this move to force down the value of the currency is a real indication that they're getting ready, as you say, setting the table. So it's not just geopolitically, it's also from an economic point of view as well.

Well, China has already imposed export embargoes on certain rare earths, and they could increase that. And as you point out, during the early months of the pandemic in 2020, they threatened to cut off pharmaceuticals. Got to remember that, yes, we have got to buy, but also China's got to sell. So I think what would happen would be, if they were to say, impose export embargoes on pharmaceuticals,

Well, China has already imposed export embargoes on certain rare earths, and they could increase that. And as you point out, during the early months of the pandemic in 2020, they threatened to cut off pharmaceuticals. Got to remember that, yes, we have got to buy, but also China's got to sell. So I think what would happen would be, if they were to say, impose export embargoes on pharmaceuticals,

Well, China has already imposed export embargoes on certain rare earths, and they could increase that. And as you point out, during the early months of the pandemic in 2020, they threatened to cut off pharmaceuticals. Got to remember that, yes, we have got to buy, but also China's got to sell. So I think what would happen would be, if they were to say, impose export embargoes on pharmaceuticals,

we'd still be able to buy Chinese pharmaceuticals. We may not be able to buy them from the Chinese directly, but we can buy them through third parties. Go back to 2010, China imposed an export ban on rare earths to Japan. Japan actually just bought them directly from Chinese state-owned enterprises, which had to sell despite the embargo.

we'd still be able to buy Chinese pharmaceuticals. We may not be able to buy them from the Chinese directly, but we can buy them through third parties. Go back to 2010, China imposed an export ban on rare earths to Japan. Japan actually just bought them directly from Chinese state-owned enterprises, which had to sell despite the embargo.

we'd still be able to buy Chinese pharmaceuticals. We may not be able to buy them from the Chinese directly, but we can buy them through third parties. Go back to 2010, China imposed an export ban on rare earths to Japan. Japan actually just bought them directly from Chinese state-owned enterprises, which had to sell despite the embargo.

And the embargo lasted a month or two, and then Beijing just capitulated. So I think we'll probably see the same thing here. If China were to impose export embargoes on the U.S., they might be more determined with us than they were in 2010. But nonetheless, the market is a global one, and we'd be able to source what we need. Higher price initially, but we'd be able to do it, Mike.

And the embargo lasted a month or two, and then Beijing just capitulated. So I think we'll probably see the same thing here. If China were to impose export embargoes on the U.S., they might be more determined with us than they were in 2010. But nonetheless, the market is a global one, and we'd be able to source what we need. Higher price initially, but we'd be able to do it, Mike.

And the embargo lasted a month or two, and then Beijing just capitulated. So I think we'll probably see the same thing here. If China were to impose export embargoes on the U.S., they might be more determined with us than they were in 2010. But nonetheless, the market is a global one, and we'd be able to source what we need. Higher price initially, but we'd be able to do it, Mike.

If things really go south, and there's a possibility of that, of course, China probably wouldn't be in a position to export stuff, even if it wanted to. And we would suffer mightily, especially pharmaceuticals, which is a warning to us that this is something that we need to do on an emergency basis. We should have done this a long time ago. But nonetheless, we have that critical vulnerability.

If things really go south, and there's a possibility of that, of course, China probably wouldn't be in a position to export stuff, even if it wanted to. And we would suffer mightily, especially pharmaceuticals, which is a warning to us that this is something that we need to do on an emergency basis. We should have done this a long time ago. But nonetheless, we have that critical vulnerability.

If things really go south, and there's a possibility of that, of course, China probably wouldn't be in a position to export stuff, even if it wanted to. And we would suffer mightily, especially pharmaceuticals, which is a warning to us that this is something that we need to do on an emergency basis. We should have done this a long time ago. But nonetheless, we have that critical vulnerability.

Bottom line? We need to be prepared for China to do anything, at any place, at any time. Because Xi Jinping is under domestic pressure, and he can lash out. And we got to remember that in Beijing today, only the most hostile answers are considered to be acceptable. And I don't know if he can control escalation. Having said all that, at least at this moment, China is not ready to go to war.

Bottom line? We need to be prepared for China to do anything, at any place, at any time. Because Xi Jinping is under domestic pressure, and he can lash out. And we got to remember that in Beijing today, only the most hostile answers are considered to be acceptable. And I don't know if he can control escalation. Having said all that, at least at this moment, China is not ready to go to war.

Bottom line? We need to be prepared for China to do anything, at any place, at any time. Because Xi Jinping is under domestic pressure, and he can lash out. And we got to remember that in Beijing today, only the most hostile answers are considered to be acceptable. And I don't know if he can control escalation. Having said all that, at least at this moment, China is not ready to go to war.

It's not ready to go to war because the senior leadership of the PLA, People's Liberation Army, is in disarray with all of these purges which are continuing. Also, we have a Chinese military that just doesn't want to go to war, which is the reason why we've been seeing the removal of officers who are opposed to war.