Thu, 17 Apr 2025

Thu, 17 Apr 2025 Why China curbing rare earth exports is a blow to the US

As the trade war continues to escalate, China has hit back at Trump by suspending exports of rare earth minerals.
China's Retaliation in Rare Earth Minerals
* China has imposed export controls on critical rare earth minerals and magnets, dealing a blow to the US
* The move restricts the export of 7 rare earth minerals, including those used in defense technologies
* China dominates the global supply chain for rare earths, with 61% of production and 92% of processing Impact on the US
* The restrictions could lead to shortages and price increases for critical materials
* Manufacturers, particularly in defense and high-tech, face potential delays and production slowdowns
* The US relies heavily on China for rare earth imports, with 70% of imports coming from China between 2020-2023 US Response
* President Trump has ordered an investigation into the national security risks posed by the US' reliance on foreign critical minerals
* The US has one operational rare earth mine but lacks capacity to separate heavy rare earths
* Trump is considering signing a minerals deal with Ukraine and has expressed interest in Greenland's rare earth reserves Global Implications
* China's dominance in the rare earth supply chain is the result of decades of strategic government policies and investment
* The US faces challenges in diversifying its supply chains due to antagonistic relationships with potential alternative suppliers
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