China s trick is quite clever, and it has steadily stepped on the pain point of the United States

Mondo Finance Updated on 2024-01-31

According to reportsMinistry of Commerce of the People's Republic of ChinaThe latest documents show that China has officially dealt withRare earthsThe ban on processing technology will be 17 kindsRare earthsThe extraction, separation and purification technology of minerals is included in the list of items that are "not transferable to foreign countries". This move severely limits access to China for other countries and businessesRare earthsChannels for processing technology. As the largest in the worldRare earthsChina's "ban" is quite shocking.

ChinaRare earthsindustry in the worldRare earthsThe market plays an important role. According to the International Energy Agency, 87% of the world'sRare earthsThe refining is all done in China. If China raises furtherRare earthsExport restrictions, or even complete export bansRare earthsminerals and materials, the whole world will fall into ".Rare earthsdilemma". Many countries' clean energy development plans will stall, manySemiconductorsfactories will be forced to shut down, even in many countriesMilitaryThe industry will also be affected. This is because of ChinaRare earthsMaterials are widely used in high-tech areas, and even in the F-35 fighter there is ChinaRare earthsThe presence of materials.

However, China has not announced that it will no longer exportRare earthsMinerals, but announced that it would no longer be exportedRare earthsProcessing technology. This initiative is actually aimed at the United States".De-sinicization"Strategy. For many years, the United States has been interested in ChinaRare earthsThe dominance of the industry is dissatisfied, believing that this affects its own *** In order to get rid of its dependence on China, the United States is trying to co-opt allied countries and establish a "".Rare earthsIndustry Alliances", to build a non-dependent ChinaRare earthsChain。However, the biggest problem they face is the lack of themRare earthsProcessing technology.

It is reported by the American companies MPMATERIALS and LYNASRare earthsSerious difficulties were encountered in refining capacity. The Lynas company built it in Texas, USA and Western AustraliaRare earthsRefineries are all unable to function properly due to technical issues. MP's processing plant in California has also been delayed due to technical problems, and it has not been able to achieve an effective operation so farRare earthsRefining and production. These two companies are the largest in the world outside of ChinaRare earthsMineralsMining and processing companies. If China refuses to provide technical support, it will be difficult for them to be effective by 2030Rare earthsRefinery put into production, the United States".De-sinicization"The plan will also face failure.

In general, China bannedRare earthsExports of processing technology do not affect other countriesRare earthsThe material ** cleverly captures the pain points of the United States. This move can be said to be quiteClever enough, stepping on the sore spot of the Americans in one fell swoop.

The reason why China chose not to export anymoreRare earthsprocessing technology, rather than outright banningRare earthsMineralsis out of a strategic consideration. ChinaRare earthsThe industry occupies an extremely important position in the global market because:Rare earthsMaterials are widely used in high-tech industries andMilitaryField. ForbiddenRare earthsMineralsThe export will not only cause worldwideRare earthsThe turmoil in the market could also have a negative impact on China's reputation. Therefore, China has opted to pass the restrictionsRare earthsThe export of processing technology to counterbalance other countriesRare earthsMining and processing capacity.

For China, keep itRare earthsDominance of the industry means gaining a strategic advantage. Rare earthsIt is a strategic resource that is widely used in high-tech industries and national defenseMilitaryField. MasteredRare earthstechnology, China can better control the market and protect its own interests. By prohibitionRare earthsThe export of processing technology, China can consolidate itself inRare earthsfield and maintain an advantage in international competition.

On the other hand, China'sRare earthsThe ban also carries external political and economic considerations. As the largest in the worldRare earthsMineralsAs a mining and processing country, China is also facing pressure from great power competition and disputes. The United States' war and technological blockade against China have forced China to take some corresponding measures to protect its own interests. ForbiddenRare earthsThe export of processing technology is China's struggle for more development space and voice for itself in a complex international competition.

ChinaRare earthsBehind the ban, it also highlights the presence of Western forcesRare earthsindustry".De-sinicization"The dilemma of the plan. The United States has been trying to get rid of ChinaRare earthsof dependencies, build your ownRare earthsChain。However, the United States is inRare earthsDifficulties in processing technology led to the bankruptcy of the plan. Other countries such as the United Kingdom, Australia, etc., have also joined this plan in an attempt to get rid of ChinaRare earthsof dependence, to protect themselvesRare earths

However, as the report notes, the UK is inRare earthsThe self-sufficiency rate is extremely low, with a self-sufficiency rate of less than 10% for lithium resources, and it can only be obtained by ChinaRare earthsMaterial. And the United States is inRare earthsThe difficulties in processing technology are even more prominent. This makes the Western forces inRare earthsindustry".De-sinicization"Plans become unachievable, inRare earthsChainon the in trouble.

This also reflects China's presence in the sideRare earthsAdvantages and strength of the industry. ChinaRare earthsThe long-term development of the industry has made China inRare earthsRich experience and technology have been accumulated in mining and processing. This makes China in the worldRare earthsIt dominates the market and cannot be easily replaced. Under the influence of the long-term technological blockade and war against China, the Western forces have gradually realized that China is thereRare earthsThe importance and strength of the industry, but they have not been able to quickly keep up with the pace of China.

Finally, the Western forces pursue".De-sinicization"and try to get rid of ChinaRare earthsdependence, on the one hand, exposes them inRare earthsOn the other hand, the difficulties in processing technology have also deepened their dependence on China. ChinaRare earthsThe implementation of the ban is undoubtedly a powerful response to this plan. China inRare earthsThe advantages and strength of the industry, as well as the combined influence of its foreign political and economic considerations, make the Western power inRare earthsfield".De-sinicization"The plan is in a difficult situation.

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