Overdependence on Chinese Supplies of Critical Minerals Trump Issues Presidential Directive to Address National Emergencies

President Trump issued an Executive Order on Wednesday (September 30, 2020) declaring the nation’s overdependence on foreign adversaries for critical minerals a national emergency.

Trump asked the Secretary of the Interior and other government heads to investigate this dependence and establish a domestic supply chain for critical minerals by streamlining the expedited approval process for new mines and using the Defense Production Act, among other measures.

The U.S. government previously listed 35 minerals as critical to the national economy and national security, including 29 minerals that the U.S. must import more than 50% of in order to meet domestic demand.

The latest executive order issued by Trump says the U.S. dependence on China for many of its critical mineral supplies is of particular concern, including the direct import of 80 percent of its rare earth needs from China. In the 1980s, the U.S. produced more of some rare earth elements than any other country in the world, but China used predatory economic measures to flood the global market with cheap products to displace other competitors, the executive order says. After gaining a market advantage, China forced industries that depended on these rare-earth supplies to relocate their factories, intellectual property, and technology to China, just as it did in 2010 when it cut off supplies to Japan.

Shortly after taking office, in 2017, Trump signed an executive order announcing measures to reduce U.S. dependence on foreign countries for supplies of uranium, titanium, and rare earth elements. Pursuant to that executive order, the U.S. Secretary of Commerce released a report in June 2019 stating that a decision by China and Russia to permanently halt shipments of key minerals would cause major shocks to the entire U.S. supply chain of critical minerals.

At the same time, some members of Congress are working on legislation to reduce and end U.S. dependence on China for critical minerals. However, their proposed measures, such as simplifying and expediting the approval process, have raised concerns among other members of Congress about the potential for environmental damage.