Media reports indicate that the Chinese Communist Party is considering restricting exports of rare earth minerals to the United States and has asked industry executives to assess the impact of cutting off rare earth supplies on the U.S. manufacture of the F-35 fighter jet. The picture shows the F-35 fighter jet.
According to media reports, the Chinese Communist Party is considering restricting exports of rare earth minerals to the United States, which could become a new dispute between the two countries.
China’s Ministry of Industry and Information Technology (MIIT) proposed draft controls on the production and export of rare earth minerals in January and provided a 30-day public comment period.
During the comment period, industry executives were asked to assess how U.S. and European companies would be affected if Beijing decided to restrict rare earth exports in a bilateral dispute, the Financial Times reported, citing people involved in the discussions.
“The government wants to know if the U.S. might have trouble building F-35 fighter jets if China imposes an export ban.” A Chinese Communist government adviser told the Financial Times.
Industry executives were also asked to comment on whether the U.S. might quickly obtain rare earths from alternative suppliers, or increase its own production capacity.
Rare earths is the collective name for 17 metals that are needed in the manufacture of aerospace, computers, cell phones, power generation and transmission systems, and advanced electronics.
China currently controls about 80 percent of the world’s supply of rare earth minerals and sees its dominance as a bargaining chip it can use against the West. It is unclear whether China could actually weaponize its rare earth exports, as this could in turn force other countries to increase their own production capacity, ultimately costing China its dominant position in the supply chain.
Pini Althaus, CEO of USA Rare Earth, said that with more government support and industry innovation, the timeline for increasing capacity within the United States “could actually be very, very short.
American Rare Earths is currently developing the Round Top Rare Earths Project in Texas. Round Top, located in Texas, contains 16 of the 17 rare earth elements, as well as 11 non-rare earth minerals classified by the U.S. Department of the Interior as critical to national security and the economy, including lithium, beryllium and uranium. According to estimates, Round Top Mountain has a mining Life of approximately 130 years and a total mineral reserve of 364 million tons.
“The problem has been self-evident for decades, and now we see firsthand why we have been warning that China’s dominance of rare earths and key mineral industries is a highly volatile geopolitical issue.” Althouse said in a statement.
“To counter the Chinese Communist Party’s attempted clamping down on defense and other high-tech metals, the United States and its allies must continue to invest in this sector.”
Former President Donald Trump (R) signed an executive order last year aimed at expanding and enhancing domestic mining of rare earths and other important minerals.
“The United States now imports 80 percent of its rare earth elements directly from China, with the rest procured indirectly from China through other countries,” Trump said in the executive order, adding, “In the 1980s, the United States produced more of these elements than any other country in the world, but China used aggressive economic tactics to strategically dumped rare earth elements on the global market, displacing competitors.”
Last year, a bipartisan group of House and Senate members also introduced bills aimed at reducing U.S. dependence on China by providing tax incentives to the rare earth industry.
“The global pandemic underscores our dependence on China to meet our demand for critical minerals used in products such as electric and hybrid cars, computers and military equipment.” Rep. Henry Cuellar (D-Calif.) told the Epoch Times.
“For the sake of our national security and economic interests, we must reduce our nation’s dependence on China for rare earth minerals. I am a co-sponsor of the Rare Earths Act (RARE Act) to incentivize domestic production and develop our own stable supply chain. To remain a world leader in technology and military innovation, we must act.” Henry Cuellar said.
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