Trump to announce Tariff's..., page-54

The US and China are involved in a high stakes poker game with the announced tariffs and potential trade war...

In 2010 China imposed strict RE export quotas to mitigate pollution concerns and preserve resources (so they said)...

Prices of RE's soared, and the United States, European Union and Japan complained to the WTO that the export restrictions gave Chinese companies an unfair competitive edge. In 2014 the WTO ruled against China which I'm sure really taught them a lesson...

I am waiting for the other shoe to drop in the current China trade escalation event... So far the US has imposed tariffs and China has responded in kind with tariffs somewhat similar in nature. However, given the aggressive policies of the current administration(s) we could likely see an escalation on both sides of the Pacific, imposing tariffs tit-for-tat....

That's where the haymaker comes in. Forget the tariffs, China will simply limit the exports of RE's just as they did in 2010. WTO intervention? Unlikely given current global dynamics...

This could be both beneficial and detrimental to Lynas, the benefit will be short term price increases which could be significant and great for the bottom line. The downside is that any supply disruption could damage the perception of a consistent and reliable supply of RE's...

In any event Lynas and RE awareness are positioned to benefit from any publicity arising from from any such development and what's good for the RE industry is good for Lynas...

The next few weeks will be interesting, however looking at China's cards it is hard to imagine they will play them recklessly... Ironically, it probably will be China that plays the trump card in this high stakes poker game of world trade... JMHO...