19 minutes agoChina's powerful “rma” against Trump's trade war
Periskopi(a year ago)
(a year ago)In a simple factory in the industrial city of Ganzhou in southeastern China, Chinese President Xi Jinping stated in 2019 that rare <x0methals are a vital strategic source”. Nearly six years later, this declaration is becoming reality as Beijing uses its dominance in the chain of supply of rare metals like [...]
Rare metals are essential to modern technologies ranging from iPhone to electric vehicles and military weapons such as F-35 aircraft. Though found in many lands, their processing is expensive, complex, and polluting. China controls 61% of the global production of raw materials and 92% of processing, virtually dominant the industry.
Recently, China has established new controls for export of these metals, which have immediately influenced the ban on remittances to American and European companies. Companies have been caught unprepared, seeking clarity on new licenses required by Chinese authorities to continue exports, writes CNN.
Industry experts, such as John Ormerod and Joshua Ballard, warn that the US does not retain enough reserves and depends almost entirely on China for heavy metals “ <x1) rarer and more valuable. Meanwhile, Beijing has expanded controls, including products containing minimal amounts of these elements, broadcast Periscope.
The US government has launched efforts to build an internal supply chain. Since 2020, the Department of Defence has provided over $49m to create national capacity to process rare metals. The goal is to cover her own protective needs by 2027, U.S.A.
Companies such as Phoenix Tallings and USA Rare Earth are taking concrete steps: One has developed waste-free technology, while the other is building a magnet factory in Texas and owns a deposit rich in rare metals in the West Texas. However, the major challenge remains the processing, which takes time and big investments.
China began investments in the sector since the years KH70s, benefiting from low labour costs and low environmental standards. According to Stan Trout, most of the technology was first brought by the West, but China not only adopted it but also improved it. This strategic approach has led to leaders' prophetic words Deng Xioping in 1992: “while the Middle East has oil, China has rare metals. ”
Today, this decades-long effort gained power is being used as a means of pressure in the global arena. While the US struggles to regain ground, Beijing is showing that there is a powerful weapon that sanctions or Trump tariffs cannot easily undo.
If the US wants to maintain its role as a global technological and military power, it must seriously invest in independent supply chains, otherwise China's dominance in this field will be an irreparable advantage for years to come.
