China covers all bases as America does as it is told
In the aftermath of the recent meeting between President Joe Biden and President Xi Jinping at the Asia-Pacific Economic Cooperation event in San Francisco, hopes for improved Sino-US relations have dwindled. China’s announcement of export controls on rare-earth technologies has added fuel to the fire, further straining the already complex relationship.
There are rare earth metals outside of China. U.S. and Australia have deposits. It will simply cost more because it won’t be slave labor and will adhere to significantly more strict environmental standards- Oceans Seven
China, as the world’s leading processor of rare earths, has imposed an export ban on technologies used to extract and separate these crucial metals. A document from the Ministry of Commerce, cited by Bloomberg, reveals the extent of these measures. This move is a significant blow to Washington and its allies who have been working to reduce their dependence on China’s dominance in the global rare earths market. With control over approximately 85% of the global refining capacity for the 17 rare earth metals, China’s influence extends across various industries, from electric vehicles to wind turbines and military hardware.
The tit-for-tat actions between the US and China began earlier when Beijing initiated export bans on gallium and germanium in July. This retaliation was in response to the Biden administration’s semiconductor chip export ban, revealing the increasing tension between the two economic powerhouses.
China is banning the export of some rare-earth metals and the US may raise tariffs on Chinese electric vehicles, as the Biden administration tries to create a warmer relationship with Beijing.
Brendan Murray reports https://t.co/mp4PengXvO pic.twitter.com/p4gJdSgtw1
— Bloomberg TV (@BloombergTV) December 21, 2023
Adding another layer to the dispute, the Wall Street Journal reported that the Biden administration is contemplating tariffs on specific Chinese products, such as electric vehicles, with the aim of bolstering the US clean-energy sector. This move is seen as a response to the influx of cheap Chinese clean energy products into the market, especially during a downturn in solar, wind, and hydrogen industries.
The escalation of export restrictions by Beijing highlights a broader trend of both Eastern and Western powers weaponizing industrial raw materials and technologies against each other. For the West, a key concern is the realization of a grand vision to reshore supply chains, which, at present, remains a distant goal.
China’s control over rare earths amplifies its strategic leverage, providing it with a potent tool in geopolitical negotiations. The Biden administration, recognizing the critical role rare earths play in various high-tech industries, is likely to intensify efforts to diversify supply chains and reduce dependence on Chinese resources. This challenge is part of a larger struggle for technological dominance that extends beyond rare earths.
China, the world's top processor of rare earths, on Thursday banned the export of technology to extract and separate the strategic metals, as it overhauled a list of technologies deemed key to national security.https://t.co/N4AyVqDBiX
— NEWSMAX (@NEWSMAX) December 21, 2023
The global implications of this struggle are profound. The Biden administration’s consideration of tariffs on Chinese products reflects a broader effort to secure a competitive edge in the clean-energy sector. As demonstrated by recent developments in solar power and offshore wind projects, the race for dominance in renewable technologies is heating up.
Beijing’s decision to wield export controls on rare-earth technologies signals a strategic move in the ongoing economic and technological rivalry between the US and China. Both nations are grappling for supremacy in key industries that will define the future, and the impact of this struggle extends far beyond their borders.
China 🇨🇳 Bans Rare Earth Metal Exports in Apparent Retaliation for Chip Blockade led by USA 🇺🇸 pic.twitter.com/HaH62wQ0Rh
— Business Basics (@businessbasiics) December 21, 2023
To Sum IT All Up: the recent escalation in tensions between the US and China, triggered by China’s export controls on rare-earth technologies, underscores the depth of the economic and technological rivalry between the two global powers. As the struggle for dominance unfolds, the international community watches closely, recognizing the far-reaching consequences of these actions on global supply chains, technological innovation, and the balance of geopolitical power.
Major Points Discussed:
- China’s imposition of export controls on rare-earth technologies following the APEC meeting with President Biden has strained Sino-US relations.
- As the world’s top processor of rare earths, China’s ban on the technology to extract and separate these metals poses a significant challenge to global supply chains, with 85% of the refining capacity under Beijing’s control.
- The tit-for-tat trade tensions began with China’s export bans on gallium and germanium in response to the Biden administration’s semiconductor chip export ban.
- The Biden administration is reportedly considering tariffs on specific Chinese products, such as electric vehicles, as a strategy to strengthen the US clean-energy sector in the face of cheap Chinese alternatives.
- The broader picture reveals a global struggle for technological dominance, with China leveraging its control over rare earths as a geopolitical tool, while the US aims to diversify supply chains to reduce dependence on Chinese resources.
Al Santana, freelance writer
Comments – Threads – Links
- China bans export of rare earth processing technologies – Financial Times
- While the current JoeBiden administration doesn’t believe in National Security- Hey?
- If they want to play economic warfare games, then we need to make sure they are treated equally… remove the high tech that they have stolen or been given from the west… let their manufacturing base be ‘reset’..Peaceful Primate
- These will drastically reduce dependence on China for rare earth metals- Indic History
- MP Materials is the Largest Rare Earth Company, Will Benefit from China’s ban of exporting Rare Earth Metals and Technology- Paul Marc
- Why do they insist on insulting our intelligence? Any EV battery made with Cobalt from child labour in the congo – or using rare earth minerals refined in China is not green or clean. Neither is the massive carbon footprint from the mining needed to produce the necessary metals/materials. – Mikes Money Talks
- China, the world’s top processor of rare earths, on Thursday banned the export of technology to extract and separate the strategic metals, as it overhauled a list of technologies deemed key to national security. – Newsmax
