This rare earths embargo is getting serious. This morning, I read that two Volkswagon EV factories in Europe were temporarily idled in late 2025 because of a shortage of the AP550 electric motor, a part that relies on rare-earth magnets.
This Chinese "embargo" did NOT just come out the blue. Here's the story from an X post by Zhao DaShuai, a Chinese socialist influencer and a member of the People’s Armed Police Propaganda Bureau (so she is obviously biased in favor of the Chinese):
Oooo, I'm really asking for it now. Haha!
Zhao posted, "From a reliable source, on why Scott Bessent has a grudge against Li Chenggang:
During the negotiation in Spain, the US delegation threatened more semiconductor control measures against China.
Li Chenggang then picked up the phone and ordered the anti-monopoly investigation against Nvidia during the meeting, right in front of Scott Bessent's face. (George: Wow, this Chinese guy was not messing about.)
Sorry for the naughty word [Shame]
On the issue of US threatening to impose docking fees on ships built in China; we (the Chinese negotiators) told the US delegation, that we will impose crippling rare earth export control bans if they go through with it.
Bessent didn't believe the warning, he didn't even fully convey our (the Chinese) position on this matter to Trump, which is why Trump was so blindsided when the rare earth export control went into effect, claiming in his Truth Social post that, "It came out of nowhere."
It's obvious Trump would be angry at Bessent, who then needs to blame someone on the Chinese side - Li Chenggang who basically slapped Bessent in the face - is the obvious target."
Scott Bessent complained about Li Chenggang to the Chinese authorities and publicly called him "unhinged." The outspoken trade negotiator, Li Chenggang, was dismissed as the country’s representative to the World Trade Organization.
But here's the deal: The Chinese "embargo" on rare earths sales remains!
I don't think most people appreciate the devastating effect America' massive new docking fee is having on the Chinese ship building industry.
Just this week, Greek shipping magnate, Maria Angelicoussis, cancelled two Suezmax ship orders with China and moved them to South Korea. No shipping concern today want to risk buying $85 million Chinese ships that could - because they were built in China - be sanctioned with impossible docking fees.
The Chinese are pissed. Shipping has a been a HUGE industry for China. This rare earths "embargo" might not go away easily.
The folks on the news never talk about why World War II started. In early 1941, the U.S. and the Dutch suddenly stopped selling oil to Japan. At the time, Japan was at war with China, and they were desperate for Indonesian oil.
The Japanese knew if they invaded Indonesia to seize their oil that the U.S. would declare war on them. If they had to fight the U.S., the Japanese might as well land the first blow at Pearl Harbor.
Francisca, my beautiful, exotic wife of 43 years is Dutch Indonesian. Her dad married a pretty Indonesian girl. In 1941, Cisca's grandfather was the highest ranking Shell Oil executive in Indonesia. When the Japanese stormed the beaches of Indonesia, Cisca's grandfather ordered the destruction of all of Shell's oil wells.
When the Japanese found the wells burning, they were pissed. They loaded Cisca's grandfather onto a truck, which headed out into the jungle. He was never seen again.
