The Wall Street Journal disclosed on August 3 that a manufacturer of drone components for the U.S. military was forced to delay orders by up to two months in an effort to find rare earth magnets from non-Chinese sources.
The prices of certain materials needed for the U.S. defense industry have now soared more than five times the levels before China implemented restrictions. Some companies said that the recent quote for samarium has jumped 60 times its normal price. Samarium is a critical material used in fighter jet engines. U.S. suppliers and defense executives complain that all this is driving up the cost of the defense system.
Although China still approves some civilian export applications, it has tightened the review for military-related uses. Several U.S. defense companies have warned that their inventories are running low, and if they cannot replace Chinese products, they face the risk of production cuts.
Although the United States possesses rare earth resources, its refining capabilities are weak, and there is little investment willingness. Buying shares in MP Materials also cannot solve the urgent problem.
Large defense contractors have "panicked," trying desperately to control key mineral sources. The key is that even if you have the ore, you still need to send it to China for refining. To establish your own rare earth refining line, it would take until the Year of the Monkey.
China's goal is to "regulate exports" rather than "ban exports," to "promote convenient and compliant trade," rather than cut off normal commercial exchanges.
U.S. arms dealers can only find their own solutions.
In the midst of war, amidst ruins and gunfire, in difficult situations, there is a glimmer of hope, just like life itself.
Original: https://www.toutiao.com/article/1839531781126297/
Statement: This article represents the views of the author himself.