Defence companies don’t buy rare earth ore. Other firms buy China’s rare earth ore and process them into other materials, which then other companies even further down the chain turn into components and parts, which then get bought by defense companies putting together products. You can’t target rare earth restrictions solely to companies that are two degrees removed from your point of sales. What you’re proposing is a very blunt tool, and restricting rare earth sales to such broad effects *will* blow back on Chinese industry too. Furthermore sustained restrictions of rare earth ore will just drive the US to build their own capacity to process this ore, which would basically blow back on China’s own rare earths industry.The sanctions from the PRC against the American defense firms, where they should restrict the sales and export of rare earths to them, is a very good strategic move.
President's Trump trade war and tech war against China, basically has failure. It brought no advantage of any sort to the United States.
China has gotten stronger. With the pandemic, China has gotten even more stronger.
This new attack from China onto the United States defence firms, keeps the dynamic of the trade war and tech war going. And one side is losing the trade war and tech war.
By escalating now, this keeps both countries firmly on this path.
The only way this will end now is for the United States to relent, or they do a first strike.
Not even a war, a real war will stop the Chinese from this strategy, only when the Americans relent that they CCP will stop.