Rare earths, affectionately called"Industrial Vitamins"It is a key raw material for accelerating and driving machines in modern industry. In the field of rare earths, China occupies a pivotal position. In 2022, China's rare earth production accounted for 70% of the world's total, ranking first in the world, with an output of about 210,000 tons, far surpassing the United States and Australia, which ranked second and third30,000 tons and 180,000 tons. China not only occupies a leading position in rare earth reserves and production, but more importantly, China has super strength in rare earth processing.
China has a huge advantage in terms of processing capacity for rare earths. The mining of rare earths is not everything, and it also needs to be processed intensively to make a difference. China has a high level of technology and experience in rare earth processing and refining, far exceeding that of other countries. At present, even some established developed countries can barely keep up with China. The establishment of rare earth processing capacity and the entire industrial ecosystem has enabled China to occupy a dominant position in the rare earth industry.
The importance of rare earth lies in its special electron shell structure and super high temperature resistance, which has become a treasure for both military and civilian use. Rare earths are everywhere in defense and in ordinary life. For example, rare earth magnets play an important role in the field of national defense, and rare earth lithium batteries are one of the core components of new energy vehicles. The application of rare earths plays a pivotal role in various fields, and without rare earths, many high-tech products and new energy fields cannot operate normally.
Given China's strong strength and dominance in the rare earth industry, some Western countries are trying to get rid of their dependence on Chinese rare earths and build a first-class chain without China's participation. However, Wall Street** notes that shedding control of China's rare earths is an almost impossible task. They even used rare earth magnets as an example, pointing out that they can easily buy rare earth magnets made in China for $2 online, an invincible and cheap product that no other country can match. Wall Street** believes that even though the United States has huge rare earth resources, it ultimately loses out to China's $2 low-priced product. This fact shows that it is almost impossible to get rid of China's control of rare earths.
Recently, China has tightened restrictions on rare earth exports, which has provoked mixed reactions in the international market. First of all, the decrease in the circulation of rare earths has put pressure on the production of high-end technology products such as new energy vehicles. Second, the shortage of rare earths has led to companies that are working hard to develop electric vehicles, which may set back the development of new energy vehicles in Western countries by a few steps.
However, the purpose of China's tightening of rare earth export restrictions is not to fight, but to make full use of its rare earth resource advantages, promote the development of new energy vehicles, and achieve a transformation from passive to active. China has taken a number of practical actions to achieve this goal. For example, China announced that it will continue to release rare earth production quotas in 2023, an increase of 25 percent from last year50,000 tons to meet the growing demand for electric vehicles in the international market. Through rational and compliant management and utilization, China hopes to promote the sustainable development of global science and technology and industry.
China stresses that rare earths should not become a symbol of struggle, but a symbol of democracy and peace. China believes that the rational allocation and management of rare earth resources is its own affair and does not require interference from other countries. China maintains the advantages and management rights of rare earth resources, and takes into account the growing demand for new energy vehicles in the international market to promote industrial development and economic development.
In conclusion, the importance of rare earths has led countries to try to find alternatives or reduce their dependence on Chinese rare earths, but it is almost impossible to get rid of China's control of rare earths. China has strong strength and advantages in the processing and refining of rare earths, which are widely used and are vital to high-tech products and new energy fields. The purpose of China's tightening of rare earth export restrictions is to make full use of its own resource advantages, promote the development of new energy vehicles, and realize the transformation from passive to active. China stresses that rare earths should not become a symbol of struggle, but a symbol of democracy and peace. China hopes to promote the sustainable development of global science and technology and industry through reasonable and compliant management and utilization of rare earth resources.