Zeyi Yang of Wired reports that China is tightening export controls on key minerals used in tech and defense, aiming to pressure the U.S. amid trade tensions. While past efforts had little impact, the latest restrictions could spur the U.S. and allies to reduce reliance on China by ramping up domestic production and finding alternatives. They report:
As the trade war between China and the United States continues to escalate, Beijing is responding by turning to one of its favorite retaliation tactics: limiting the export of critical minerals used in many high-tech electronics, from fighter jets to wind turbines. While China’s mineral restrictions may sound scary, the reality is that they haven’t been very effective in the past and stand to become even less so if the US and other countries finally get their acts together. […]
In the past, efforts to build up the critical minerals supply chain in the US have either been slowed down or called off. That’s more due to basic economic calculations, says Lange, rather than technological difficulties. “It’s like bending down to pick up a nickel,” he says, meaning the effort isn’t worth the reward.[…]
“It’s really remarkable how China has actually maintained these monopolies in so many critical minerals for 20 years,” says Wang. “But I do think we are maybe starting to turn the corner, where China’s market share may be peaking … and you are starting to see a resurgence of interest in these industries in Northern Europe, Australia, Canada, the US, and Latin America.”
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