However, the rare earths card is one that Chinese leaders have long had up their sleeve. China has been signalling that it may restrict the export of rare earth minerals to the United States as the trade conflict between the two countries escalates. Japanese media specifically noted that this includes China's tightening of rare earth exports. China Gears Up to Weaponize Rare Earths Dominance in Trade Disputes Beijing is gearing up to use its dominance of rare earths to hit back in its deepening trade war with Washington. In 2010, Japan accused the Chinese government of purposefully halting its supply of rare earth minerals — seen as retaliation after Japan detained a Chinese fishing trawler captain who was found in waters under dispute by the two nations. China is the largest producer of 19 of these 35 minerals. Japan Samples of rare earth minerals, from left, cerium oxide, bastnasite, neodymium oxide and lanthanum carbonate, are on display at Molycorp's Mountain Pass Rare Earth facility in Mountain Pass, California. The elements are a crucial component of products that cut across the U.S. economy, not only in the tech sector but the energy, automobile and defense industries as well. When Chinese President Xi Jinping toured a rare-earth processor a week after the Trump administration blacklisted Huawei in May, he highlighted the importance of rare earths in global supply chains—a statement widely interpreted as a threat to restrict Chinese exports to the United States. Now, rare earths have become a bargaining chip in the expanding trade war between China and the United States, which escalated after the Trump administration placed Huawei, the … However, it must be noted that rare earth exports are actually found in many countries. In 2017, China, which has around one third of the 120,000 tons of global reserves, produced more than 80% of the global supply of rare earth metals and compounds. That is why some analysts say the US Defence Department must back alternate production efforts in the US and elsewhere. This would be similar to the activities of the US Department of Commerce's "entity list" for foreign companies that trade with North Korea or Iran, or are accused of illegal acts such as money laundering or forced labour, etc. Once this law is enacted, it will be the first time that China has used legal means to formally restrict the export of rare earths to "unfriendly" foreign companies. Rare earth elements are an important strategic resource for China to the outside world. rare earths In the case of Apple, its iPhones — the majority of which are made at a Foxconn factory in China — use the metals for its cameras, speakers and other key parts. For an optimal experience visit our site on another browser. It is expected that the latest review will be conducted at the National People's Congress next week, before it is decreed and implemented in 2021 at the earliest. The US imports about 80 percent of its rare earth elements, used in a host of electronic components, from China. BREAKING: Multiple victims reported in shooting at Tennessee high school, on a blacklist that imposed some restrictions, how the two countries' tech industries have grown intertwined. Japan counted on the rare earths for a number of uses, including the production of its hybrid cars, solar-panel glass and battery packs. Given that Japanese companies comply with US restrictions on China, business people in Japan will be concerned about this law. Erik Ortiz is a staff writer for NBC News focusing on racial injustice and social inequality. China's threat to curb exports of rare earth minerals to the United States could move the needle in an escalating trade war as the world's two largest economies continue to jockey for leverage. Some believe this move was a signal to business leaders and officials in the US to highlight China's dominance of these important minerals. That is precisely why China has been pushing the idea of using rare earths as a potent weapon in the trade war with the US, with articles appearing across a wide range of Chinese publications that have close links to the Chinese administration. This included the 17 rare earth elements. If China cuts off exports, it would hurt America but also undermine its own long-term economic goals SHUNSUKE TABETA, Nikkei staff writer February 21, 2021 03:54 JST BEIJING -- In a move seen as a defensive measure against possible future U.S.-led trade bans, China … China waves the rare earth card in the in trade war ANALYSIS | 8/9/2019 12:09:07 PM GMT US-China trade tensions reached a new low point this week. This means that if foreign companies are seen as to harm China's interests, or have links with related parties that harm China's interests, then Beijing will restrict or simply prohibit their export of strategic resources, most notably rare earths. Rare earths have traditionally been a tool of China's political-economic fights. The move comes as China has started making noises about restricting rare-earth exports amid escalating trade friction with the U.S. China accounts for much of the world's output of these metals. Despite their name, rare earths aren't all that rare. https://t.co/JvdunMsPfm. Rare earth elements have become key in the trade war between the United States and China. China gears up to weaponise rare earths in trade war Wed, May 29, 2019 - 9:09 AM Beijing is gearing up to use its dominance of rare earths as a counter in its trade battle with Washington, according to a salvo of media reports in China that included hints from the state planning agency. China in strong position. What is Huawei, and is it dangerous to America. Other countries, including India, Brazil and Australia, share a smaller output. "Rare earths" could help China in trade war 00:33. From the 1960s to the '80s, the U.S. was the global leader in rare earth mineral production based out of a mine in California, which later closed. It was found. In 2017, China accounted for 81% of the world’s rare earth production, data from the U.S. Geological Survey showed. Two years ago the United States listed 35 minerals deemed critical to US security and economic prosperity. The visit, which some analysts saw as a show of force of China's dominance in the rare earths arena, set off concerns that Beijing may be pushing back against Washington's tariffs on Chinese imports by choosing to ban exports of the minerals. China moved to tighten control over the rare-earth metals industry in what some experts see as its latest response to the ongoing trade war with the US. China state media reports suggest the country is considering limiting exports of "rare earths" as the trade war with the U.S. escalates. Magnetic attraction Rare earths give China leverage in the trade war, at a cost. A few days ago, the Association of China Rare Earth Industry protested against the … According to statistics, about 90% of Japan's magnesium and barium carbonate also come from China. The U.S. military also depends on rare earths for the construction of equipment used in satellites, lasers, jet engines, radar and sonar systems, and other sophisticated machinery. Also, the US, Russia and other countries currently send their rare earth minerals to China for processing, which means it has a stranglehold on global production. What makes them unusual, however, is that they're difficult to extract in high concentrations from the ground. Excavators load trucks with rare earth in east China's Jiangsu province in 2012. This included the 17 rare earth elements. The elements' names, which include cerium, promethium, scandium, might sound like something out of science fiction, but each one can be used for a variety of purposes — from making magnets, batteries and lights, to glass production and the cooling of nuclear rods. Beijing is has stepped up it's threats to stop the export of rare eart... Another bone of contention emerged in the trade negotiations between the US and China. But China quickly gained ground in the '90s, and is home to more than 30 percent of the world's rare earth reserves. (ATF) China has threatened to create a rare earths blacklist as its trade war with the United States deteriorates. US-China trade war China's President Xi Jinping may have tipped his hand last week when he toured a region of China that calls itself a "rare earths kingdom.". These 17 rare minerals are needed for various high-precision technology, as well as military and industrial products. China included rare earths in a batch of tariffs … Now, rare earths have become a bargaining chip in the expanding trade war between China and the United States, which escalated after the Trump administration placed Huawei, the world's largest supplier of telecommunications equipment, on a blacklist that imposed some restrictions on trading with American companies. In 2014, the World Trade Organization ruled that China could not impose export limits, which Beijing said was only being done to ease pollution caused by mining and to conserve its resources, Reuters reported. The U.S. Geological Survey describes them as a "relatively abundant group" of 17 chemical elements. China gears up to weaponize rare earths in trade war. The diplomatic dispute highlighted how much other countries have counted on China and how it remains a dominant and integral player in many industrial supply chains. China is the largest producer of 19 of these 35 minerals. What started as a trade war has morphed into a technology war, and at times, possibly a currency war. August 20, 2019. If you have a smartphone or computer, own a flat-screen TV, drive a hybrid car or use a myriad of other high-tech devices, you'll no doubt come into contact with these elements — mined from the earth's crust and supplied predominantly by China — countless times a day. By 2025, China is expected to be net importer of rare earths, a factor that may lead Beijing to hesitate to drive up global prices or set a precedent of using rare earths as a political tool. The mainstream electric vehicle supply chain raw materials - lithium, graphite, cobalt, nickel - must learn from the rare earth crisis of 2010 which is on cusp of repeating itself. It was noted that this draft legislation was published as early as three years ago and has been reviewed twice in the period since then. By 2017, China accounted for roughly 80 percent of the world's rare earth production, according to the U.S. Geological Survey. While it's unclear what a rare earths ban might mean for the tech giant, analysts have expressed anxiety that it could disrupt production and affect prices. blacklist The Chinese Foreign Ministry, however, has been less forthcoming about what message was being sent. What makes them valuable is the fact the processing of rare earths is a dreadfully dirty business, which is technically complex and that miners in other countries lack the expertise to do this. Large American companies, including Lockheed Martin and Apple, have products that rely on rare earths. It was found that the United States needed to import 31 of the 35 minerals. The proposed regulations, which include everything from mining to exports, was announced by the Ministry of Industry and Information Technology (MIIT) last week, The Global Times reported. Rare earth minerals are a common part of people's lives — and their futures. In other words, almost every electronic product and technological product in Japan must use rare earths. And some 14 companies are totally dependent on imports. IE 11 is not supported. It is easy to see why rare earths have become a pawn in the US/China trade war. Hu Xijin, the editor of The Global Times, a newspaper owned by the Chinese Communist Party, followed up in a tweet that the Chinese government was "seriously evaluating" the need to halt rare earth exports. This means that if foreign companies are seen as to harm China's interests, or have links with related parties that harm China's interests, then Beijing will restrict or simply prohibit their export of strategic resources, most notably rare earths. Major manufacturers such as Toyota and Panasonic were disrupted by the blockade, according to reports. Read more at straitstimes.com. Trump exempted U.S. imports of rare earths from the round of tariffs on Chinese goods announced in May, after including them in a previous round. The U.S., Japan and Europe complained in 2010 that limits imposed on rare earth and metals exports were driving up prices and gave Chinese companies an unfair competitive edge. The importance of China's rare earths to the U.S. is one of many examples of how the two countries' tech industries have grown intertwined over the years — and why the escalating tension has experts concerned about the long-term impact of an economic decoupling. BREAKING: Multiple victims reported in shooting at Tennessee high school | Watch live: Derek Chauvin trial: Day 11. Japanese media said that the rare earth blacklist set up by China is likely to include US companies, and if companies from Japan and other countries support US export restrictions to China, they may also face risks. that the United States needed to import 31 of the 35 minerals. Western countries are the largest customers for rare earth exports. And some 14 companies are totally dependent on imports. What are rare earth metals & why they are China's ‘nuclear option’ in trade war with US China produced more than 90%of the world’s supply of these critical elements over the past decade, though its share fell to 71.4% last year. Experts say the risks involved in the West developing its own rare earth production – and efforts are underway both in the US and elsewhere to bolster alternative sources – are considerable because it takes years to build up the processing skills, plus it is very expensive without considerable government backing. But they are also used in obscure but powerful ways that ensure some of the biggest companies in the world can keep churning out those products. Other American manufacturers also have production in China, while other U.S.-based companies import products, such as magnets, that already incorporate the rare earth elements. This means that if foreign companies are seen as to harm China’s interests, or have links with related parties that harm China’s interests, then Beijing will restrict or simply prohibit their export of strategic resources, most notably rare earths. Recently, some Chinese technology companies such as Huawei and SMIC have been blacklisted by the United States, and people have suggested that Beijing should respond by blocking exports of rare earths to the United States, according to Netease news agency. huawei, (ATF) Beijing has unveiled plans to redevelop and invest in its southernmost province, Hainan, and turn it into an all-singing, …, (ATF) China has lost its spot as the US’ biggest international trading partner to Mexico, which toppled the world’s second-largest …, (ATF) HSBC and Huawei Technologies' chief financial officer Meng Wanzhou have reached an agreement in a dispute about the publication …, (ATF) China is unlikely to change its view of Greenland as a land of opportunity, despite the islanders choosing a …, (ATF) China’s Environment Agency, previously a toothless dragon, has suddenly announced a rollout of rare earth production shutdowns – at …, 35 minerals deemed critical to US security and economic prosperity. Rare Earths: Next Element in the Trade War? The United States also has great demand for rare earths from China. These foreign companies will be put on a "blacklist". By using our website you consent to the use of cookies, World News Today: International News in English, World News Headlines, China rapidly expanding Baotou rare earth high-tech zone, Battle for rare earths escalates as Pentagon gets involved, Beijing tightens reins on global rare earths supply, Hainan opens door to foreign cash in pursuit of 'Hawaii' dream, China no longer the US’ top trading partner, HSBC reaches deal with Huawei's Meng over dispute, China won’t be putting its Greenland ambitions on ice just yet, China shuts down rare earth plants over ‘environmental concerns’. Rare earth minerals are a crucial component of products that cut across the U.S. economy, not only in the tech sector but in the energy industry as a catalyst for oil refineries and in wind turbines, and in the automobile industry for manufacturing electric vehicle motors. The U.S. imported about $160 million worth of basic rare earth materials last year, mainly from China. Amid the U.S.-China trade war, identify key factors that might trigger China’s decision to cut off or restrict U.S. supplies of rare earth materials. China has threatened to create a rare earths blacklist as its trade war with the United States deteriorates. In May 2019, President Xi Jinping visited a company making magnets from rare earth minerals in Jiangxi when the trade war with Washington started to heat up. As the trade war between the United States and China escalates, Beijing may be preparing to play a new card: its control of rare earth minerals.