expensive bottles are used to bribe officials but a few years ago president xi jinping kicked off an anti-corruption campaign. yet in 2012 there was a new policy budgets for official spending were cut and that affected the buy job market after 2012 we had a steep decline in sales i just. thought i should put. there by jewish fermented in mud covered earth bits that can be several 100 years old they give it a very special earthy aroma something most westerners find hard to adjust to it was . 19 years old and we were one of these outer barbecue places in beijing drinking beer and some chinese people the next table gave me a small glass of something out of a little green bottle said don t drink your drink this so i had it i thought it was the worst thing i had ever had in my head at that. but with time he started to appreciate there are hundreds of brands and types of by joe this distillery alone
dominance in the world and the americans and severely lagging behind in their own processing plants very few very few are only being in the construction phase right now one is going to open in california this year but the other 2 won t be ready to 2022 all right so is a double whammy really jimmy and we ve already seen that asian markets certainly were trading low today what s the impact going to be on financial markets and which acid classes are impacted the most you say. wow this is a very big deal for financial markets sensible and it s a big deal for a major number of different us a classes across commodities like oil and merchant markets stocks such as the shanghai composite index that includes the emerging market currencies that construction globally from the south african round africa to the chinese sean bell asian brit even as far as the mexican peso and lots of america based on investors become risk off and let s not even begin about the
such as of rare earths to many factors such as toyota and pena sorry but that did not pan out well and beijing did not emerge a winner out of that dispute the u.s. led coalition with multi with multilateral countries as well head to consult with the w.t. or in order to put a stop to china s threats and disrupting of the supplies off to these countries and there s a rule that they cannot do that and impose such bans on countries for the to disrupt the markets all right so it looks like another chapter there not the end to the trade route singapore and jimmy are made in cyprus thank you to both of you. now as the trade war between china and the u.s. rumbles on manufacturers in lower tariffs regions stand to gain textile processes in vietnam are already noticing more business from the american customers but they say chinese companies are also already relocating to benefit from vietnam slow
with 20000 tonnes and the us used to be a major producers but now turns out just 15000 tonnes so are rare earth supplies going to be the bargaining chip in the us china trade war our correspondent andrea hang joins us now in singapore and in cyprus we welcome jameel global head of currency strategy and market research at f.x. t m good to have you both on the show andrea i would like to start with you because this threat of stopping a supplies of rare earth that isn t the only thing the united states needs to worry about right now. no it isn t a plug in china supply is the least of his problems because the americans us severely legging behind now the u.s. relies on china for 80 percent of its red requirements and with that supply being disrupted there s also another problem off processing china has processing
but will germans buy a jew. welcome to you this is asia i m going to get jones in berlin good to have you with us. in a new twist to the u.s. china trade disputes china has called the u.s. an economic terrorist and signals it could stop exporting rare earth metals to the u.s. and that matters because rare earths are used in a wide range of consumer products from i phones to electric car motors as well as military jet engines satellites and lasers now rare earth are a group of 17 elements here are a few of them therion for one is used in catalytic converters and cars bastien site is used in nuclear industry. is used to make magnets and lanthanum is used in camera lenses and so forth now china supplies nearly 3 quarters of all the world s rare earth 120000 tonnes that is the big produces include australia