Part 6/7:
While rare earths constitute a crucial leverage point, China's influence extends beyond this sector. The country's efforts to diversify its exports and reduce dependence on the U.S. are evident in recent trade data. Export numbers from China surpassed expectations, yet direct shipments to the United States accounted for only about 10% of total exports—a sign of shifting economic strategies.
Moreover, Beijing has been astutely addressing the political sensitivities of President Trump—taking advantage of key issues like the trade deficit, fentanyl exports, and soybean sales to exert pressure. For instance, China's soybean imports from other countries have hit record levels, with no imports from the U.S., affecting American farmers who rely on China as a major market.