Carl Zha : “China agreed to extend the the rare earth export license for cars but not for the US military-industrial complex which is a problem for the U.S.

Carl Zha : " US is still China's third largest export market. You know China has no interest killing its customers. So China agreed to extend the the rare earth export license for cars but not for the US military-industrial complex which has been a problem.<


https://youtu.be/tg1yEK80uGc?si=xdGVIyzGenasvqom <


You know, we saw during the 12-day Israel Iran war, there was a really rapid depletion of the US arsenal. And now we have reports from Wall Street Journal said uh Israel basic they just used up one quarter of one quarter of all the US THAD missiles as that has been ever produced in 12 days. and they're going to have a huge problem trying to restock and and adding to that restocking problem is China's export on rare earth uh controls and how how are they going to get that <


people in Washington are saying oh there's no problem we just got to scrap our environmental regulations and and dig baby dig you know just drill baby drill well us do have real earth mines there's a large mine called the mountain pass mine in California just near Las Vegas. Uh so digging out the real earth is not a problem. The the real problem is in refining um because the the real earth industry has moved to real earth industry has moved to China for 40 years now. All the processing all the technology of actually making the heat resistance rare earth magnet now it's Chinese. <


to give an example in China most of the university offer the real earth chemistry uh class in US university there's none because that industry doesn't exist anymore in the US so when they dig out the real earth from California currently what they do they send it over to China for processing <


so it's not a problem of just digging so so it's not a problem of just digging it out and it's going to take them years to try to set up a China independent supply chain because uh first of all you don't have the human capital. We don't have those courses in university to train people how to do the job. and then all the technology all the machine tools are in China and so at this point if you want to slap 100% tariff on China just say ok no rare earth for you. Sorry.<


So this is uh this is why I don't expect any hiccups. Donald Trump will for sure the technology all the machine 6:01 tools are in China and and so at this point if you want to slap 100% tariff on 6:08 China just say I was no rare earth for you. Sorry. So this is uh this is why I don't 6:15 expect any um I lI| I don't expect any hiccups. Donald Trump will for sure 6:21 extend it. And this is given Trump's threat of slapping 100% tariff 6:29 on any nation that purchase Russian oil. You know they they threaten to put secondary sanction on on Russian oil 6:35 purchase. Well biggest purchase of Russian oil is China and India. Well, 6:41 and and China already said, "No, you're extend it. And this is given Trump's threat of slapping 100% tariff on any nation that purchase Russian oil. You6:29 on any nation that purchase Russian oil. You know they they threaten to put secondary sanction on on Russian oil 6:35 purchase. Well biggest purchase of Russian oil is China and India. Well, 6:41 and and China already said, "No, you're not going to tell us what to do, who who who we can buy oil from. That's our 6:47 sovereign rights. And you know, it's your it's your rights to slap 100% 6:52 tariff on us. We're just going to slap 100% tariff right back at you. Then we'll be back to the situation in May." 6:58 So, that's not going to happen. This is an empty threat. Like you said, Trump is 7:04 very predictable in his unpredictable ways. You know, we can't always count the taco