US-China Trade Tensions: The Struggle Over Rare Elements and Chips

The power struggles between the US and China have increasingly manifested in recent times with escalating tensions. This situation has been further deepened by mutual tariffs and technology restrictions imposed by both countries. In particular, rare earth elements and semiconductor chips have become the most prominent areas of competition.

Trade tensions are not only due to a lack of economic goodwill; they are also shaped by national security concerns. The US administration has imposed restrictions on certain Chinese technology firms citing national security reasons, while China has responded by increasing tariffs on US products. These reciprocal retaliations have created an increasingly deepening environment of conflict between the two countries.

Rare earth elements are at the heart of modern technology and industry, and control over these elements holds strategic importance for both sides. Particularly in areas such as smartphones, electric vehicles, and renewable energy, these elements pose a challenge for the US's interests in the high-tech market. China's control over 70% of the world's rare earth element production further solidifies its dominance in this field.

The chip sector constitutes another central point of the trade dispute. While the US seeks to control the production and technology of strategically important chips, China continues its efforts to increase its domestic production. American tech giants such as Nvidia and Intel are at the center of this competition, battling to maintain their leadership in the international market.

Moreover, issues such as soybean exports, fees applied to ships in ports, and regulations on air freight continue to create disputes between the two countries. Trade restrictions on agricultural products and logistics services particularly create uncertainty for farmers and producers, affecting the economies of both countries.

In conclusion, the complex relationship between the US and China presents itself as a reflection of not only economic but also strategic wars. The future course of the trade war will significantly impact both countries' internal dynamics as well as the global economy.