Asian View of American Trade Policy Under Trump, Rare Earths

Highlights

• Shakeel Ahmad Ramay critiques US economic sanctions and decoupling strategies targeting China’s critical technology and rare earth sectors.
• US sanctions reportedly caused a $1.7 trillion market value loss and negatively impacted domestic industries and global supply chains.
• China maintains a technological competitive edge by producing 60% of the global rare earth supply and investing heavily in innovation and STEM education.

---

In a recent article for China Daily, Shakeel Ahmad Ramay (opens in a new tab), CEO of the Asian Institute of Eco-civilization Research and Development, critiques the United States’ strategy of economic sanctions, decoupling, and confrontation, especially as they relate to critical technologies and rare earth elements.

The author emphasizes the pivotal role of rare earth metals in global technological development and notes China’s dominance in this sector, producing 60% of global supply and holding one-third of global reserves. This advantage, coupled with China’s strategic investments in innovation and STEM education, positions the country as a critical player in the ongoing technological race.

Ramay contends that US policies—spanning tariffs, trade restrictions, and technology sanctions, initiated during Donald Trump’s presidency and continued by Joe Biden—are counterproductive. Citing research, he highlights the economic harm these measures have inflicted on the US, including a $1.7 trillion loss in market value between 2018 and 2019 and adverse effects on producers, farmers, and consumers. The author argues that sanctions also disrupt Western industries, referencing the struggles of companies like ASML and Qualcomm due to their reliance on China’s market and resources.

Point of View—Does Trump’s Approach Help China Rare Earths?

The article raises critical questions about the sustainability of the US’s approach. Ramay suggests that these policies inadvertently accelerate China’s innovation and diversification efforts, undermining their intended effect. He warns that the US risks harming its own industries and allies while failing to impede China’s technological ascent.

However, readers should note potential biases in the article. Ramay’s affiliation with an organization based in Pakistan, a close ally of China, and his platform in China Daily, a state-run media outlet, may color his critique.  This news souThe assumption that all Western nations uniformly agree on the unsustainability of sanctions, without citing dissenting opinions, also limits the article’s balance.

Ultimately, Ramay’s piece underscores the high stakes of rare earths and critical minerals in global geopolitics. It challenges US policymakers to reconsider strategies that may exacerbate domestic economic strain and international tensions, calling instead for cooperative and sustainable solutions.  While the piece may be published in a state-owned media that does not mean it should not be reviewed and understood.