China has opened pandora’s box and what have they have firmly in their grip has the world shocked. The recent trade war between the world’s largest economies has had an unforeseen consequences. Donald Trump singled out China with his proposed tariffs, and the Asian giant responded with some restrictions and tariffs of their own. The effect on the energy sector has now come to light. Most of the components that can be found in everyday lives as well as the extraordinary are manufactured in China. Not to mention the raw minerals.
How have we found ourselves in this position? How much power does China have?
The advancement in the energy sector has led to some amazing improvements in our everyday lives. The technology that can be found in the mudaine is astounding to say the least. The world is run off of batteries made up of elements that, up until recently, were extremely hard to come by. China has long led the world in manufacturing and this new power has the US economy in trouble.
Donald Trump’s view of China has never been great. During his campaign he pointed out, on numerous occasions, how China was ripping off the United States and how he would implement measures to bring it to an end. His policies regarding China specifically had the world ready for a all out trade war. Which has now happened just as predicted.
His tariffs that he imposed were only ever going to have a negative effect on the American economy, which it must be said has an effect on the world economy. The world has made huge leaps forward in the energy infrastructure powers the planet around us. How can America possibly compete with the kind of innovation and creativity in the Chinese energy sector?
What exactly does China have such a strong grip on?
The problems seem to centre around the raw minerals that are used in a variety of components that are manufactured around the globe, not just America. The emergence of the superpowered battery has enabled the human race to create new forms of energy production that is not so harmful to the planet. China has a work ethic and dedication to the task at hand that cannot be found anywhere else in the world.
China banned exports to the United States of the critical minerals gallium, germanium and antimony that have widespread military applications and everyday uses. That has serious implications on the American’s ability to produce critical military equipment that help them spread “democracy” around the world through their many military conquests.
That is not to mention the need for gallium in the production of the batteries that power our everyday lives. The effects that China’s new policies toward the US has been felt already. The manufacturing process is a global one that requires the collective efforts of a number of countries to work well. This is a huge bump in the energy road that we are all on. Can we recover from this?
Can the world recover from the disastrous trade war between the US and China?
With China banning exports to the United States indefinitely and Donald Trump pushing the world economy into a freefall, the energy sector in particular will no doubt bear the brunt of the trade war. The essential minerals that China produce have given them the power to bring nearly all US manufacturing to a complete halt. Will the world ever recover? The world is looking for the next alternative energy source. Can the energy sector broker a deal between the two economic giants that could ease the tension allowing production to get back on track? Only time will tell.