Keith Bradsher

or trying to rebuild inventories in the West, are really having trouble procuring the magnets they need.

So this is a big win for Russia because the West really needs these rare earths to continue supplying military equipment to Ukraine to defend itself.

And now that supply has been cut off cold by China.

China has a whole separate dispute going with Europe over cars.

The European Union became very concerned last year that China had subsidized the development of electric cars and was going to flood the European market with electric cars.

And so the European Union put tariffs in place

And there was a big loophole left in these tariffs, which is that if you put a tiny gasoline engine in, along with a great big electric system in these cars, then you don't pay any tariffs at all.

And so China has been flooding the European market, particularly this year, with exactly that category of highly capable electric cars with a tiny gasoline engine included, and they don't face any extra tariff.

China does not want Europe to raise the tariffs.

It does not want Europe to close the hybrid loophole.

So China is putting a lot of pressure on Europe.

And then finally, China has leaned towards Russia on the Ukraine issue.

China wants Europe to distance itself from the United States in NATO.

So China has a lot of incentives to...

be very tough with Europe and has been very tough with Europe this year.

Am I wrong about that?

Short term, China does have a very strong position.

But there are real long-term dangers to the Chinese economy in pursuing this strategy.

So many multinational companies have come to rely on China for part or all of their supplies of many components, many products that you see in stores all over the United States.

And as China shows that it's willing practically overnight to halt these supplies, China is damaging its reputation as a reliable supplier.