(Dan Tri) – China is considering imposing a ban on the export of rare earths, an important ingredient in many high-tech products, to the US in response to Washington’s trade war.
Rare earth gathered at Lianyungang port, China (Photo: RT)
In an interview with CCTV News, an official from China’s economic planning agency warned that products using China’s rare earth resources should not be used to counter China’s development.
“You just suggested that rare earths could become one of China’s measures to respond to America’s unreasonable suppression… What I can tell you is that if anyone uses
Hu Xijin, editor-in-chief of the Global Times, a Chinese state-run publication, also emphasized that China could seek to use its position as a leading supplier of rare earths if the trade war
“As far as I know, China is seriously considering restricting exports of rare earths to the US.
Last week, President Xi Jinping paid a visit to a Chinese rare earth facility in the context of the trade war between the two countries escalating and the US having just imposed an embargo on Huawei – a large telecommunications corporation.
Although there has not been any official statement issued from China, Mr. Xi’s visit has raised many concerns that Beijing is willing to use rare earths, especially the ban on exporting precious metals.
Impact on America
Information that China may introduce a ban on rare earth exports has appeared in recent weeks.
Rare earth can be used to produce and develop high-tech products such as smartphones or electric vehicles.
American strategists say China’s dominance in rare earths comes from the Chinese government considering rare earths a strategic resource and determining its exploitation for about 100 years.
The 2018 US government report also emphasized the US Department of Defense’s dependence on rare earth supplies from China.
`Rare earths are essential components used in many important weapons systems for US national security,` the report said.
According to political analyst Alessandro Bruno, rare earths, essential resources for the military, aerospace and electronics industries, “are certainly a weapon that China can use in trade negotiations
`China controls about 85-95% of rare earth production and supply,` Mr. Bruno said, emphasizing that American companies are heavily dependent on this resource.
However, Marc Chandler, global market strategist, said that the threat to ban rare earth exports to the US was not issued by the Chinese government and this threat did not have a major impact on the global market.
Success
According to RT, Sputnik
Nick John