Foreign media said that Chinese leaders visited a rare earth permanent magnet material manufacturer this week. Against the background of the escalating trade frictions between China and the United States, this has released a strong message:If things get worse, there are still several important cards in China's hands. One of them is rare earth.
According to the Financial Times website on May 21, rare earths are abbreviations for a group of metals, which contain 17 metal elements and have various high-tech uses. China's rare earth reserves rank first in the world. Rare earth has attracted international attention in 2010, and now many processing activities are carried out in China. Rare earths are made into complex downstream accessories such as magnets, sensors or dashboards. Any new battle around rare earths will focus on these products rather than on basic minerals.
DATA PICTURE: The picture shows permanent magnet products made from rare earth and other raw materials (Xinhua News Agency)
Last week, the United States decided to blacklist Huawei, a Chinese Telecom company. The U.S. move may have a strong impact on the global technology industry, so that Washington had to grant China a three-month grace period on the 20th, before the ban came into full force.
David, senior researcher at New America, an American think-tank
In other words,Rare earths are important not only to the high-tech industries of the United States (electric vehicles, wind turbines, etc.), but also to the national defense of the United States.
Anthony, chairman of Texas Mineral Resources, was quoted on May 22 on the Wall Street Journal websiteThe message of the visit is to remember that China has the ability to influence the production of many major products in the United States.Anthony also said that for people tracking the rare earth industry and the Trump government, they understand the implications.
According to the Spanish newspaper Abesay's website on May 22, China's rare earth reserves account for about 30% of the world's total reserves, but control more than 90% of the world's market supply. Considering the importance of rare earth, the United States, Australia, Burma and Burundi have begun to exploit rare earth resources in China so as not to overly rely on China.
Last year, the United States reopened the country's only rare earth mine, the Mantingshankou rare earth mine, which has been abandoned since its old owner, the Molybdenum Mine Company, declared bankruptcy in 2015.
Rare earth concentrate to be treated in the Rare Earth Processing Facility of Mangting Mountain Pass
According to the report, 80% of the rare earth imports from the United States come from China. This dependence is likely to be a trump card in the hands of the Chinese government in the context of the continuing imposition of tariffs on Chinese exports by the White House.
Experts are not optimistic about the future development of the situation, believing that everything will return to its original point in the future.Whoever masters technology can lead the world. It was guns during World War II, and now it's high technology.Now the battlefield is no longer full of smoke, but transferred to the high-tech field. Rare earth resources are the key cornerstone of high-tech industry.