China’s new restrictions on rare earth exports, crucial for U.S. electronics, electric vehicles, and defense industries, heighten trade tensions and expose America’s heavy reliance on Beijing for these critical minerals. (Shutterstock)
Share
|
Getting your Trinity Audio player ready...
|
China has intensified controls over rare earth minerals, key components in electric vehicles, electronics, and military technology, reigniting trade tensions with the United States, BBC reported.
Companies in China now require government approval to export even small amounts of the minerals, which include neodymium, yttrium, and europium.
China dominates the rare earth supply chain, producing about 61% of the world’s rare earths and refining 92%, according to the International Energy Agency.
Analysts say Beijing is using this near-monopoly as leverage in trade negotiations with Washington.
The U.S., which depends on China for roughly 70% of its rare earth imports, could face production slowdowns and higher costs in defense and high-tech manufacturing.
Experts warn that without significant investment in domestic processing or alternative suppliers, America’s reliance on China for these critical minerals could continue to pose both economic and national security risks.
RELATED TOPICS:
Categories
Visalia Man Gets 60 Years-to-Life for Sex Crimes Against Children
