As tensions rise in the U.S.-China trade war, the balance of power is closely scrutinized. The Trump administration asserts that the U.S. holds the upper hand due to China's substantial exports to the U.S., compelling them to negotiate. However, experts suggest China has significant leverage, as it can impose damage through strategic retaliations such as bans on critical mineral exports essential to American industries. This complex landscape indicates that both nations are prepared to bear economic pain to achieve their objectives in this escalating conflict.
"The ball is in China's court. China needs to make a deal with us. We don't have to make a deal with them," said White House press secretary Karoline Leavitt on Tuesday.
"China does have a lot of cards to play. It has a lot of leverage," said Jia Wang, a senior fellow at the China Institute at the University of Alberta.
"In a retaliatory measure, [China] banned exports of certain critical minerals earlier this month. The ban covers seven rare earth elements and magnets used in defence, energy and automotive technologies."
"China believes it can both inflict more damage on the U.S. and tolerate more pain from a tariff war."
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