China’s Curbs on Critical Mineral Exports Will Leave West Gasping While it Calls the Shots
A woman walks towards a U.S. embassy car outside a hotel in Shanghai on Tuesday, July 30, 2019
Amid the trade row with the US, China tightened export controls on rare earth metals essential for everything from smartphones and electric cars to military hardware.China’s clampdown on exports of rare earths as retaliation for US and allied tech restrictions will jolt global supply chains, especially for automakers, Peter Arkell, chair of the Global Mining Association of China, told Sputnik. With new export licenses now required, Just-in-Time production lines in the West “will be left gasping,” he noted. He ventured the opinion that European and US companies reliant on these components will be “cursing the tariff policies that kickstarted this tit for tat trade confrontation.” For decades, Western auto giants have built deep roots in China’s supply chain – including the heavy magnets and other components derived from the processing of rare earth minerals. China’s dominance in this field – 25 years in the making – cannot be replaced overnight. Rebuilding that capacity at home would require massive spending, serious R&D, and stricter environmental standards – none of which are quick or cheap. “So, if one of the goals of the Trump tariffs is to protect America’s manufacturing industry, then it will be a hollow strategy if the essential components produced in China cannot be produced domestically,” he summed up.
AnalysisChina’s Rare Metal Ban Could Bring US Military-Industrial Complex to a Grinding Halt: Here’s Why8 April, 18:59 GMT
