The Most Beautiful Experiment.

Is Xi losing control of the military?

“The first news summary of the morning —the most comprehensive I’ll receive all day— and the last thing I read before going on air.” — Hugh Hewitt, host of The Hugh Hewitt Show.

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1. Chris Miller:

Shortly after Beijing announced new restrictions on exporting rare earth minerals and the specialized magnets they make, the world’s auto industry warned of shortages that could force factory closures. China’s skillful deployment of rare earth sanctions this spring was probably the key factor in forcing Washington to reverse its tariff rises on the country. They represent a new era of Chinese economic statecraft — evidence of a sanctions policy capable of pressuring not only small neighbors but also the world’s largest economy….

(T)he most striking aspect of China’s weaponization of rare earths is how unprepared western governments and companies were. Even those who cannot name a single rare earth element know that China dominates their production. Nevertheless, over the decade and a half since China first cut rare earth exports to Japan in 2011, the west has failed to find new suppliers. Some modest steps were taken. Korea expanded its stockpiles. Japan invested in Australian mines. Yet most western governments devised critical minerals strategies and then chose not to fund them. Manufacturers speak of resilience yet some keep only a week’s supply of rare earth magnets in their inventories. This is a weapon they have been staring at for decades. They should not have been surprised when Beijing finally pulled the trigger. (Sources: christophermiller.net, ft.com)

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2. David Autor:

We’re in the midst of a totally different competition with China now that’s much, much more important. Now we’re not talking about commodity furniture and tube socks. We’re talking about semiconductors and drones and aviation, electric vehicles, shipping, fusion power, quantum, AI, robotics. These are the sectors where the US still maintains competitiveness, but they’re extremely threatened. China’s capacity for high-tech, low-cost, incredibly fast, innovative manufacturing is just unbelievable. And the Trump administration is basically fighting the war of 20 years ago. The loss of those jobs, you know, was devastating to those places. It was not devastating to the US economy as a whole. If we lose Boeing, GM, and Apple and Intel—and that’s quite possible—then that will be economically devastating. (Read the rest. Sources: shapingwork.mit.edu, technologyreview.com)

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