Toàn cảnh thế giới 17/7: TRUNG QUỐC VỠ TRẬN RỒI

Summary

The US is aggressively challenging China’s dominance in the rare earth industry, a vital sector for national security and technology. MP Materials, backed by the US government, is leading the charge to reclaim the rare earth supply chain, reducing dependence on China. Meanwhile, China faces an internal economic crisis, with growing debt, wage cuts, and a struggling middle class. Despite official claims of growth, millions are suffering under economic strain. This stark contrast highlights the US's drive for global leadership while China grapples with a looming financial collapse.

Takeaways

• 😀 The global economic order is shifting, with the US taking a more aggressive stance against China's dominance, especially in the rare earth industry.
• 😀 MP Materials, a US-based rare earth giant, has launched a major campaign to challenge China's control over the global rare earth supply chain.
• 😀 China controls over 90% of the global supply of rare earth magnets, a critical material used in everything from smartphones to missiles.
• 😀 The US is making strides to rebuild its rare earth supply chain, with investments in mining, processing, and magnet production, notably at the Mountain Pass mine in California.
• 😀 MP Materials has received over $1 billion in investment from the US government and the Pentagon to restore rare earth mining and production capacity.
• 😀 The US faces significant challenges in this endeavor, including higher production costs and a lack of experienced engineers in rare earth extraction and processing.
• 😀 China’s economy is facing a severe internal crisis despite state media claims of a strong recovery, with widespread salary cuts, debt, and worker exploitation.
• 😀 Many Chinese workers are struggling with salary cuts, debt, and long overtime hours, leading to a growing social and economic crisis within China.
• 😀 The Chinese middle class is facing massive debt, with millions of households in default, and the real estate sector collapsing, worsening the financial crisis.
• 😀 Despite efforts to maintain an image of economic growth, China's economic model is heavily reliant on debt, creating a ticking time bomb for its economy and society.

Q & A

What is the main focus of the U.S. strategy discussed in the script?

The main focus of the U.S. strategy is to regain control of the rare earth industry, which is crucial for national security and high technology, and to reduce reliance on China's dominance in this sector.

How does China currently dominate the global rare earth market?

China controls over 90% of the global supply of rare earth magnets, which are essential for a wide range of technologies, including mobile phones, electric cars, and military equipment like guided missiles.

What actions has the U.S. taken to challenge China's dominance in the rare earth sector?

The U.S. has launched a bold strategy, with MP Materials leading the charge, to rebuild an independent rare earth supply chain. This includes mining, processing, and magnet production within the U.S. The U.S. Department of Defense is heavily involved, and a significant investment has been made in infrastructure and equipment.

What challenges does the U.S. face in its efforts to regain control of the rare earth industry?

The U.S. faces challenges such as higher production costs (about 50% more expensive than China), a shortage of skilled engineers and experts, and the unavailability of certain key rare earth elements, particularly heavy rare earths, from the Mountain Pass mine.

What is the situation within China's economy as described in the script?

Despite claims of a strong recovery, China's economy is struggling internally, with people facing salary cuts, high debt levels, and overwork. Many industries, including the auto and electronics sectors, are suffering from delays in payments and financial instability.

How are China's workers impacted by the economic situation?

Workers in China are enduring salary cuts, increased debt, and overwork. Many are struggling to make ends meet, with some working additional jobs or relying on family support. The situation is exacerbated by the government's focus on exports rather than improving the welfare of its citizens.

What is the current debt situation in China?

China is facing a significant debt crisis, with millions of people in default or delinquent on loans. The household debt-to-GDP ratio has skyrocketed, and many people are living in precarious financial situations due to the economic pressures.

How does the script portray China's middle class?

The middle class in China is depicted as being in financial distress, with many people trapped in debt. This group, once a pillar of society, is now struggling due to the collapse of the real estate market and high personal debt burdens.

What is the role of China's government in the ongoing crisis?

The Chinese government is criticized for prioritizing economic growth through exports and production, often at the expense of the welfare of its citizens. The government has been suppressing information about the economic challenges and using debt as a tool to prolong the life of the failing economy.

What is the potential outcome of China's current economic trajectory?

Experts warn that China is headed for a systemic collapse due to the unsustainable debt levels, the real estate market crisis, and the weakening middle class. This could lead to a profound loss of confidence in the economy, further exacerbated by the government's inability to address the needs of its people.