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China Hints It Could Embargo Rare Earth Minerals to U.S.
China hints it might counter a U.S. escalation in the trade war between the countries by restricting exports of its rare earth minerals used in electric cars and consumer electronics.
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China hints that it might counter a U.S. escalation in the trade war between the countries by restricting exports of its rare earth minerals used in electric cars and consumer electronics.
China produces more than 95% of the world’s rare earths, the Japan Times notes. The U.S. relies on China for roughly 80% of its imports of the minerals.
In a “routine” inspection of a rare earths company earlier this week, China President Xi Jinping pointedly observed that rare earth minerals are “an important strategic resource, but also a nonrenewable resource.” Observers say the timing of his tour—two weeks after the U.S. imposed 25% tariffs on $250 billion worth of Chinese goods—was no accident.
The Trump administration has threatened to impose tariffs on another $325 billion worth of goods from China if the two countries fail to reach a meaningful trade deal soon. So far, the U.S. levies have excluded rare earths from China.
JT says China appears reluctant to make rare earths a weapon in the trade war, because it would accelerate develop efforts by customers to find alternative materials.
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