Part 6/11:
In response to the tariffs, China made bold countermeasures that included an 84% tariff on all US imports and severe export restrictions on rare earth metals critical to technology production. This dual approach not only targeted American businesses but also trapped China's economy within a perilous cycle, leading to collateral damage for its own industries.
The bans on rare earth exports sent shockwaves through global tech production, halting operations for major companies reliant on these materials, such as semiconductor manufacturers. Production lines that once vibrantly hummed with activity fell eerily silent, and the economic engine fuelling China's growth ground to a halt.