How Rare Earths Became China’s Top Trade Weapon

The most famous commercial talks between the United States of Chinese have developed the extent to which the United States depends on China for rare land, which is strong raw materials that support technology from combat aircraft to wind turbines.

Washington and Beijing have been imprisoned in a bitter trade war since US President Donald Trump announced experimental definitions in most of the world in April, at some point in the leadership of customs duties on China to 145 percent. China has declined by distinguishing one of the main weaknesses in Washington: rare land.

The most famous commercial talks between the United States of Chinese have developed the extent to which the United States depends on China for rare land, which is strong raw materials that support technology from combat aircraft to wind turbines.

Washington and Beijing have been imprisoned in a bitter trade war since US President Donald Trump announced an experimental tariff in most of the world in April, at one time leading definitions on China to China into amazing matter 145 percent. China to hit By spreading one of the main weaknesses in Washington: rare land.

In addition to other counter -measures, Beijing has revealed new export restrictions aimed at largely heavy land. China maintains strangling the rare Earth supply chains in the world, with Chinese companies commander About 85 percent of rare land treatment and 92 percent of magnet production.

Ashley Zumwalt Forbes, Deputy Director of the US Energy Ministry for Critical Minerals and Minerals, said that rare land and critical minerals “have emerged as an Achilles heel to the United States in the discussions of the United States of China.” “It is not possible to exaggerate their importance.”

Before Trump took office this year, he was Beijing actually Obtained exports One of the techniques behind the production of rare land magnets, extraction, and separation. But the latest counter measures in China went further. Protest From the United States of Manufacturer and Leadership Two rounds Thin -level talks between us and the Chinese negotiators.

after Weeks of frustrated negotiations and AccusationsThe Ministry of Commerce in China certain Last week he will do so Approval of rare land export applications To the United States and Washwashin He was “Cancel a series of restrictions it has taken against China.”

Grassillin Baskran, an expert in critical mineral security at the Center for Strategic and International Studies, said that rare land has become a “powerful, powerful tool” in negotiations. “The United States needs to reach rare land, and it is ready to negotiate. China sees it as a strong bargaining tool.”

But what is the rare land, really? On the basic level, there is a rare ground that is a group of 17 metal elements that can be found on a periodic table and bear names such as nodium and dysprosium.

Paskran said: There are two types of rare land. She said that China is especially dominant to separate the rare heavy land, and it makes the latest export restrictions Beijing–Which mostly targeted the rare heavy land–In particular, painful for the United States. “We do not have alternative sources of rare heavy land,” Paskran said.

Despite their name, the rare land Not really this is rare. “The name is actually a wrong name,” said Adam Web, an analyst at Benchmark Mineral Intelligence, a consultant. “They are not uncommon in the Earth’s crust. It is just difficult and difficult.”

From advanced weapons systems to green energy infrastructure, the rare land is a decisive element in many advanced technologies in the world. For example, each F-35 fighter plane is designed with more than 900 pounds of rare land; more than 1000 pounds From minerals go to the construction of wind turbines.

“They are in every form of defense technology, they are in MRI scanners, and they are in the treatment of cancer; they are in your phones, and your laptops are in chips.” “Since it is intersection, the rare land shortage will not be isolated in one sector.”

Washington was not always Vulnerable to Beijing’s fist on rare ground supply chains.

Paskran said that the United States was once the largest producer of rare land. but American local mining industry It turned decades ago with environmental fears growing and many companies struggle financially. American lawmakers began to see mining as a sector that could be Using external sources of other countriesIn 1996, he closed congress American mines office.

With the conversion of the United States, China doubled. Beijing has been poured for decades Huge capital Resources in the research efforts and infrastructure of the industry, which gives it such a firmness about the market supply today so that it was able to influence global prices–It is difficult for anyone else to compete.

China has also carried out the rare land in the previous geopolitical diaspora, the most prominent of which is when they are Send exports shortly To Japan in 2010. This step sent a shock through Tokyo, which rushed to reduce its dependence on Beijing. But the White House did not take the same steps.

“The case is that the Chinese gave a warning 15 years ago–15–Christopher Exston, a mining strategy at Hallgarten & Co. said.

If American lawmakers do not notice, they will definitely be. It was rare land and critical minerals Priority From the first Trump administration and the Biden Administration, which the latter has harnessed the law to reduce inflation to encourage local production.

The resources appeared again as the axis National Energy Emergency On his first day in the office. Trump’s attempt To increase the safety of the American metal supply chain, it played a major role in its management approach to Ukraine, Greenland, and even Canada. The American leader is also said to weigh the use of the Cold War era authorities to operate rare land projects, Bloomberg It was mentioned in June.

In recent months, American lawmakers on both sides of the corridor have also made legislation, including Rare Earth Security Law and Critical metal security lawIt aims to jump on the American local industry and diversify away from Beijing.

In the center Among this batch, MP materials, which run the only rare mine that currently operates in the United States, has been operated Many of the huge US government awards. In 2024, MP materials obtained tax credit worth $ 58.5 million to enhance what would be the first rare magnet manufacturing facility in the United States, according to what he said. a company.

“I think there is a profound psychological transformation on the part of both the government and the industry,” said Matt MATIRIALS, chief communications employee at MATERIALS. “It is no longer theoretically that this is a threat.”

However, for all these efforts to form new supply chains, analysts say China will be able to continue to take advantage of its power in the near future. It takes years for the engineer of metal supply chains and new treatment, and the United States on the back foot, while a large geopolitical race appeared.

“The United States will remain somewhat dependent on Chinese production for some time,” said Webb of Benchmark.

He said: “This is a strong bargaining segment that China can use in these commercial negotiations because it is realistic, not only the United States can transform the tap and start producing more rare minerals.” “It takes some time to develop these deposits and develop refining capacity as well.”