China Strengthens Rare Earth Mineral Controls Amid U.S. Trade Tensions
China restricts global supply of rare earth minerals, granting exclusive permits to U.S. suppliers as trade relations between the two nations become increasingly strained.
In a significant escalation of tensions in the trade relationship between China and the United States, China has imposed tighter restrictions on the global supply of rare earth minerals.
This move comes despite a recent brief truce in ongoing trade negotiations between the two economic powers.
Multiple sources indicate that China has granted two exclusive permits to rare earth suppliers that provide essential metals to the three largest automotive manufacturers in the United States.
In a swift response to these developments, the White House has rescinded licenses previously granted to China that facilitated the importation of components for nuclear power plants from the United States.
The U.S. Department of Commerce suspended these permits just one day after a telephone conversation between Chinese leader Xi Jinping and U.S. President Joe Biden—the first such dialogue since the intensification of trade hostilities.
China, which controls approximately 90% of the global supply of rare earth minerals, has tightened its export controls in recent years, driven by the surge in demand from the electric vehicle (EV) sector and the renewable energy market.
The late Chinese leader Deng Xiaoping famously remarked in 1992 that 'The Middle East has oil, and China has rare earths,' highlighting the strategic importance of these materials.
The Chinese government has categorized seven rare earth elements—including gadolinium, terbium, samarium, dysprosium, lutetium, yttrium, and scandium—as critical resources.
These elements are vital for various technologies, such as electric vehicles, solar panels, and batteries.
New export controls were reinstated by China shortly after the U.S. celebrated the end of the Trump administration, requiring companies to apply for individual licenses before importing these specific rare earth elements.
This move comes despite a recent brief truce in ongoing trade negotiations between the two economic powers.
Multiple sources indicate that China has granted two exclusive permits to rare earth suppliers that provide essential metals to the three largest automotive manufacturers in the United States.
In a swift response to these developments, the White House has rescinded licenses previously granted to China that facilitated the importation of components for nuclear power plants from the United States.
The U.S. Department of Commerce suspended these permits just one day after a telephone conversation between Chinese leader Xi Jinping and U.S. President Joe Biden—the first such dialogue since the intensification of trade hostilities.
China, which controls approximately 90% of the global supply of rare earth minerals, has tightened its export controls in recent years, driven by the surge in demand from the electric vehicle (EV) sector and the renewable energy market.
The late Chinese leader Deng Xiaoping famously remarked in 1992 that 'The Middle East has oil, and China has rare earths,' highlighting the strategic importance of these materials.
The Chinese government has categorized seven rare earth elements—including gadolinium, terbium, samarium, dysprosium, lutetium, yttrium, and scandium—as critical resources.
These elements are vital for various technologies, such as electric vehicles, solar panels, and batteries.
New export controls were reinstated by China shortly after the U.S. celebrated the end of the Trump administration, requiring companies to apply for individual licenses before importing these specific rare earth elements.
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