The Financial Times reports that the Chinese Communist Party is exploring restrictions on rare earth exports to combat the U.S. defense industry.
The Financial Times reports that the Chinese Communist Party is exploring ways to crack down on the U.S. defense industry by limiting exports of rare earths. Rare earths are critical to U.S. defense contractors, and Lockheed Martin needs them urgently to produce advanced weapons such as the F-35 fighter jet.
Citing sources involved in the consultation, the Financial Times reported that industry executives revealed that Chinese government officials had asked them how much U.S. and European companies would be affected, including whether the U.S. would run into trouble in producing the F-35 fighter jet, if the Communist Party restricted rare-earth exports during the outbreak of the bilateral dispute.
Rare earths are reportedly used in a wide range of applications and are needed in everything from smartphones to jet fighters. The U.S. imports 80 percent of rare earths from China, and if the Chinese Communist Party restricts exports, it will affect the U.S. supply chain.
Rare earths, short for “rare earth elements” or “rare earth metals,” is a collective name for 17 elements in the yttrium and lanthanide families. China’s rare earth reserves account for about 35% to 40% of the world’s total, and its production is more than 60% of the world’s total.
According to the U.S. Department of the Interior Geological Survey (USGS) and other agencies, in 2019, China accounted for 62.9% of the world’s rare earth ore production, the U.S. for 12.4%, Australia for 10% and Myanmar for 10.5%.
The Communist Party of China announced regulations on rare earths management last month. China’s Ministry of Industry and Information Technology said through its official website that rare earth is an important strategic resource and a non-renewable resource. China is a large country of rare earth resources, and has a pivotal position in the field of rare earth production and rare earth utilization. Speed up the development of this regulation, from the legal clarity of rare earth management systems, is conducive to maintaining China’s national interests and strategic resource industry security.
After being refined into non-ferrous metals, rare earths can be used in metallurgy, petrochemicals, glass and ceramics, fluorescent agents, basic electronic materials, as well as communications, computers, medical care, optoelectronics, energy materials, electric vehicles, aerospace technology and other cutting-edge technology, thus becoming a strategic bargaining chip for the Chinese Communist Party against Western countries and Japan and other countries.
The Chinese Foreign Ministry said last year that it would sanction Lockheed Martin, Boeing and Raytheon for selling weapons to Taiwan.
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