China's rare earth ban leaves a loophole, a very clever move: the US military is in trouble!

On October 9th, China issued two announcements consecutively, announcing export controls on rare earth-related items and technologies. Unlike previous times, Announcement No. 61 for the first time extended the scope of control to overseas - any organization or individual exporting rare earth-related items containing Chinese components to countries and regions outside of China must obtain an export license from China.

The announcement also clearly leaves a loophole, which is that export applications for the final use of emergency medical, responding to public health emergencies, natural disaster relief, and other humanitarian relief are exempt from the licensing requirements. This completely blocks Europe and the United States' mouths, leaving them no room to object.

According to Announcement No. 61, as long as the value of the original Chinese components in the product reaches 0.1% or more, an export license must be applied for. The setting of this 0.1% threshold is extremely low, covering almost all rare earth-related items related to China's rare earth industry chain.

Data shows that China controls 70% of global rare earth mining and 90% of refining capacity. More than 90% of the rare earth materials purchased by the United States are processed by China. Each Virginia-class submarine requires 9,200 pounds of rare earth, while the Arleigh Burke-class destroyer requires 5,200 pounds of rare earth.

The U.S. Department of Defense's "Critical Materials Strategy" report states that the U.S. rare earth reserves can only support the F-35 for six months, exposing major vulnerabilities in the U.S. military supply chain. The F-35 fighter jet produced by Lockheed Martin was originally planned to carry out the Block 4 upgrade plan in 2025, but it has been delayed due to a shortage of rare earths.

China's recent rare earth control measures correspond with its export controls on seven heavy rare earth elements and magnets in April, accurately striking the most vulnerable part of the U.S. military industry chain.

Original text: www.toutiao.com/article/1845479062330377/

Statement: This article represents the views of the author himself.