The United States has been trying to wean itself off its dependence on critical minerals such as China's rare earths, but recently US Deputy Secretary of State Jose Fernandez admitted that the United States still needs to work with China because China's position in this field cannot be completely replaced.
China is reportedly the world's largest producer of rare earths, accounting for 90% of global refining production. Rare earths are an important raw material used in the manufacture of high-tech products, such as smartphones, electric vehicles, wind turbines, etc. Dai Qi, the representative of the United States, once said at the G20 business summit that the United States has been greatly affected by China's "rare earth influence", and China has replaced the largest country before the United States. Dai Qi also said that China's rare earth pricing "cannot compete with the United States", leading to the bankruptcy of many American rare earth companies.
In an effort to reduce its dependence on China, the United States is seeking to diversify its raw materials, including the development of minerals such as rare earths on its home soil and in allied countries. But the process is not easy and takes time and investment. The Pentagon plans to award the first ** contract to a U.S. or Canadian company by the end of the year for gallium, a metal used to make solar cells and radars. The U.S. is also seeking investment in Canada, Australia and other places to establish a rare earth production chain.
However, the United States is also aware that China, as the world's second largest economy and the main partner of the United States, cannot be completely excluded from its position in the critical minerals chain. On the 22nd, Jose Fernández, the U.S. undersecretary of state for economic growth and environmental affairs, said that the United States is still willing to cooperate with China, but at the same time will protect its own interests, will not rely too much on China's mineral supply, and will seek other channels to solve the problem.
Some analysts believe that this statement by the United States reflects its "weak position" in the field of raw materials and concerns about China's countermeasures. China is one of the world's largest manufacturing countries, with well-established production systems and industrial clusters, so it is a long-term reality that many American companies will choose to source raw materials and components in China. Previously, the United States had tried to restrict China's imports of Western technology while at the same time obtaining Chinese finished products, a move that sparked questions and reactions from the international community. Some commentators have pointed out that the United States always carries great malice when handling relations with China, accusing China of the instability of the chain and the change of rules, but why do they themselves continue to strengthen cooperation?