A new Sino-US science and technology contest is about to begin!The U.S. Department of Commerce announced that it will investigate the U.S. semiconductor chain and defense industrial base to address the hidden dangers caused by dependence on Chinese chips. The survey is expected to be launched in January 2024 and will be launched shortly. In response to this initiative, China's Ministry of Commerce and the Ministry of Science and Technology jointly issued the "Catalogue of China's Prohibited Export and Restricted Export Technologies", with 24 and 110 technology projects prohibited and restricted from export respectively. This announcement shall be effective from the date of publication. The choice of this time point is really ingenious, and the meaning of the knife is first explored. Among the 24 prohibited export items, "rare earth refining, processing and utilization technology" is listed as one of the prohibited export items. This move can be described as a painful blow to the enemy. Although the announcement did not name countries and did not explicitly refer to rare earths, it did involve 24 prohibited export projects. But we know tacitly that the real focus of China's ban on exports of related technologies this time is in the field of rare earths. The ban on the export of rare earths is a major blow to the United States. This control revolves around rare earth production technology, which is of extraordinary significance. As the world's largest producer of rare earths, China produced 210,000 tons of rare earths in a single year in 2022, accounting for 70% of global rare earth production. In the past, our control of rare earths was mainly focused on the control of the varieties and quantities of exports, and in this way we were able to gain a say in other countries and regions. However, in terms of rare earth reserves, China does not have such a high proportion. According to the U.S. Geological Survey (USGS), at the end of 2022, the world's proven rare earth reserves were about 1300 million tons. Among them, China accounts for about 44 million tons, accounting for 34% of the world's rare earth ore reserves. Although the reserves are the largest in the world, this means that only 34% of rare earth mines are located in China, and the remaining 66% are distributed in other countries such as Vietnam and Turkey. So why do we only have 34% of the reserves and can produce 70% of the world's rare earth production?The reason is that China is at the world's leading level in rare earth refining, processing and utilization technology. It can be said that in terms of rare earth refining technology, China is unrivaled and can be called the world's first. This proves that our rare earth production technology is at the world's advanced level. Although Western countries also have a certain foundation in rare earth refining and have tried to develop their own rare earth processing business in recent years, they are really far away from China in terms of the complexity of rare earth refining, processing and utilization technology and environmental pollution. Especially in the field of heavy rare earths used in electric vehicle engines, medical equipment and ** equipment, we in China are really in a monopoly position. Therefore, directly including rare earth technology in the prohibited export project is tantamount to imposing control on the technology, which will make peripheral rare earth production more difficult. The move further reinforces China's dominance of global rare earths.
Rare earths play a pivotal role in the field of modern science and technology. They are an essential component of a number of critical materials, including electronics, defense**, energy technology, and more. Especially in the electric vehicle industry, rare earth materials are a necessity for electric motors and batteries. Rare earths are also widely used in medical devices, nanomaterials, optics and magnetics. Therefore, banning the export of rare earth technology will have a major impact on the technology industry chain of the United States and other countries.
First, the rare earth embargo will weaken the ** chain of the US defense industry. The application of rare earths in first-class equipment is extremely important, including missiles, radars, communication equipment and other high-tech military equipment need rare earth materials. Especially in some key military technology fields, such as aircraft engines, missile guidance systems, etc., the demand for high-purity rare earths is more urgent. The ban on the export of rare earth technology will seriously affect the U.S. industry, causing its chain to break and damage
Second, the rare earth embargo will limit the development of the U.S. technology industry. Rare earths play a vital role in the manufacture of electronic devices, energy technology, and advanced materials. Especially in the field of emerging technologies, such as artificial intelligence, 5G communications, etc., the demand for rare earths will increase. A ban on the export of rare earth technology will deprive U.S. technology companies of the rare earth materials they need, limiting their technology development and market competitiveness.
Finally, the embargo on rare earths will increase the instability of the global rare earths market. China is the world's largest producer of rare earths and plays a pivotal role in the market. The ban on the export of rare earth technology will have a significant impact on the global rare earth market, and the relationship between supply and demand in the market will change, which may be significant. This will have a direct impact on companies and consumers involved in the rare earth industry around the world, bringing a series of unstable factors.
China's rare earth embargo once again demonstrates our strength and ability to innovate independently in the field of science and technology. For many years, China has been committed to the research and development of rare earth development and utilization technology. Our achievements in rare earth refining, processing and utilization technology are unique in the world, and the rare earth industry chain is complete and competitive. By banning exports this time, we are not only defending our national interests, but also demonstrating to the world China's strong strength in the field of rare earths.
In addition, the ban on the export of rare earth technology has also forced other countries to innovate independently. Western countries have always relied on China's rare earths, and now they have to accelerate the development of their own rare earth industry. They need to find alternatives or develop new mineral resources to fill the rare earths** gap. This will further promote the innovation and development of rare earth science and technology in Western countries, and will also accelerate the change of the global rare earth industry pattern.
In conclusion, China's move to ban the export of rare earth technology is significant. It is not only an important strategic move in the field of science and technology, but also a powerful safeguard for the interests of science and development. Through this initiative, China has demonstrated its strong strength in the field of rare earths to the world, and at the same time, it has also forced other countries to make independent innovations and promote the development and transformation of the global rare earth industry. The strategic significance of rare earth lies not only in the control of the first chain, but also in the strategic level of scientific and technological innovation. China will continue to strengthen the protection, development and utilization of rare earth resources, ensure the stability and sustainable development of the rare earth industry chain, and improve its influence and voice in the global rare earth market. At the same time, we also expect the international community to treat China's rare earth resources with an equal and fair attitude, and jointly promote the green development and cooperation of the rare earth industry.