China s ban on rare earth exports has attracted international attention

Mondo Finance Updated on 2024-02-02

China announced a ban on the export of rare earth processing technology, which is seen as a response to the US-led restrictions on advanced chips from Chinese companies. Such a move could intensify the competition between China and the United States and their allies for global resources and technology chains. At the same time, it also exposes China's advantages in some of the world's most important resources. Rare earths are an indispensable material in clean energy and defense products, and China has the world's largest share of the rare earth chain.

Rare earths refer to a group of 17 metallic elements that play an important role in modern industry. Rare earths are necessities in the new energy industry and the defense industry, for example, in the field of new energy, rare earth elements are widely used in wind turbines, electric vehicle drive motors and other equipment; In the defense industry, rare earth materials are also used in missile guidance systems, radars, etc. Due to the long development cycle of the rare earth industry chain, which generally takes more than 15 years, China accounts for 60% of the world's rare earth mining volume, and about 90% of the rare earth processing and deep processing capacity.

China's leading position in the rare earth industry also reflects China's strength as a major country. In recent years, China has made world-leading achievements in the fields of aerospace, large aircraft, domestic cruise ships, high-speed rail, communications, quantum, photovoltaics, and electric vehicles, consolidating China's status as a great power. These breakthroughs demonstrate China's rise. China has mastered more and more cutting-edge strategic industries, which has also enhanced China's international influence and comprehensive national strength. The more frontier strategic industries a country has, the greater its international influence. It is precisely by virtue of its advantages in various important fields that China has made its status as a great power more solid.

This is also an important bargaining chip for China in the field of resources, and it is also an important tool in the international political economy. The United States and Europe have long been aware of this, but they cannot change it. China's restrictions on rare earth exports this time are undoubtedly a warning to Western countries, showing China's right to decide and speak in international affairs. Against the backdrop of Sino-US competition, China's policy is not only a countermeasure against the United States, but also an adjustment to the international political and economic landscape. The United States has always regarded China as its main competitor and even enemy, and has resorted to various means to contain China's development.

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