Part 8/11:
China’s rare earth export ban is widely viewed as Beijing’s nuclear option, a desperate move amid dwindling options and mounting economic pain. The country has already endured trillions in stimulus spending to stave off economic collapse, grappling with excessive debt loads in local governments and property sectors.
Furthermore, China has been attempting to sustain its economy by dumping goods below cost into countries like Europe and nations in the developing world. Reports have highlighted Chinese jeans selling for as little as 80 cents in Indonesia, prompting those countries to push back with tariffs of their own.