Rare Earth Metals: China’s ‘Nuclear Option’ In The Trade War
May 27th, 2019Via: oilprice.com:
A simple visit to an obscure factory by Chinese President Xi on Monday is all it took to raise the specter that China could be contemplating cutting off supply of critical materials to the U.S. and potentially crippling large swathes of its industries. Also, fueled by political innuendo in Xi’s recent call for a new “Long March” in reference to a key founding tenet of the Chinese Communist Party, speculators are growing increasingly wary of Chinese export restrictions to the U.S., including rare earth minerals.
…
China produced more than 90 percent of the world’s supply of these critical elements over the past decade, though its share was lower at 71.42 percent last year.
In 2018, the U.S. Geological Survey identified 35 minerals critical to the country’s economy and national security. America is heavily dependent on imports of these minerals, producing less than a tenth of the world’s supplies and importing half of what it consumes. It clearly highlights the U.S.’ soft underbelly.
Not surprisingly, rare earth minerals are some of the few products that escaped Trump’s latest tariffs.
