Recently, China has included rare earth processing technology in the export ban list as a counterattack to the United States' restrictions on chip sales to China. The move is seen as widening the struggle for control of resources and technology between China and the United States. The global demand for rare earth industry chain continues to expand in the context of global economic transformation, and it is expected that by 2040, the demand for rare earth will expand several times. However, rare earth projects often require a cycle of more than 15 years from exploration to realisation. At present, China contributes more than 60% of the world's rare earth mining, and in rare earth processing and deep processing, China contributes about 90% of the world's production capacity. Rare earths are indispensable key items in the contemporary industrial system, especially for the new energy industry and the defense industry. China's ban on the export of rare earth technology is aimed at ensuring that the United States counters its decoupling actions. China's irreplaceability in the rare earth industry also reflects the importance of China's position in the global industry.
The rare earth industry is of great significance to the development of a country. Historically, countries that have lost global dominance have often failed to seize incremental resources. With the outbreak of the First Industrial Revolution, Britain achieved a leap in productivity, thereby upsetting the balance of power and achieving dominance. The Second Industrial Revolution was led by Germany, which in turn was the largest increase in science and technology by the United States in a series of wars in Europe. The United States, on the other hand, won the Cold War by giving birth to the third scientific and technological revolution in the 70s and 80s on the basis of scientific research achievements from all over the world. At present, we are facing the arrival of the fourth scientific and technological revolution, and according to the experience of the previous scientific and technological revolution, the new productive force system is often the result of the superposition and sudden changes of the original system. Therefore, the United States has launched an economic, trade and technological war against China, trying to reduce China's industrial growth rate and scientific and technological innovation capacity by limiting China's industrial capacity and interrupting China's scientific and technological system. However, the current situation shows that the US interdiction has not been successful. China still plays the role of a global industrial center, and the economic and trade ties between China and the United States have weakened, but indirect links have increased. At the same time, China is also exploring new economic growth space, such as the Belt and Road Initiative, which attracted the participation of 151 countries in October. In addition, Huawei's release of 5G phones also shows the powerlessness of the US technology crackdown to stop Chinese companies from expanding in major industrial profit industries. At the same time, China has taken steps to protect its own national interests while pushing back against U.S. restrictions. China, for example, took effect on August 1 this year with restrictions on gallium and germanium. The mining of these two metals is mainly dependent on industrial smelting epitax, and it is difficult for the United States and other countries to replace China's production capacity, and the market is not able to compete with China. In addition, China has successively issued regulatory orders for drones, the graphite industry and rare earth technology, which are necessary and forward-looking in response to the increasing global geopolitical conflicts.
China's irreplaceability in the rare earth industry also reflects China's status as a great power. Today, China's status as a great power has been strengthened as it has achieved global leadership in the aerospace industry, large aircraft, domestic cruise ships, high-speed rail, telecommunications, quantum technology, photovoltaic industry, and electric vehicles. These breakthroughs highlight China's rise. China's international influence, which has mastered more cutting-edge strategic industries, has also increased, and its overall national strength has become prominent. The more cutting-edge strategic industries a country can master, the greater its international influence. It is precisely by virtue of its leading position in various important fields that China has continuously consolidated its status as a great power. Therefore, China's protection of its dominant position in the rare earth industry is also to safeguard its own interests and status as a major country.
To sum up, China has included rare earth processing technology in the export ban list as a counterattack to the U.S. chip sales restriction on China, aiming to expand the dispute between China and the United States for control of resources and technology. The rare earth industry is of great significance to China's development and is also an important embodiment of China's status as a major country. Protecting its dominant position in the rare earth industry is one of the basic tasks for China to safeguard its interests and status as a major country. At present, China's position as a global industrial center is still solid, and it has made progress in opening up new economic increments. At the same time, China has been taking various measures to counter U.S. restrictions and deal with the uncertainty of geopolitical conflicts. China's status as a great power is based on its own control of cutting-edge strategic industries, and the more it masters, the greater its international influence. Therefore, the restrictive measures of the rare earth industry are of great significance for China's development and maintenance of its status as a great power.