The United States can control rare earth mineral raw materials, but is worried about the refining technology.
The New York Times front page said that the United States is seeking to bypass China on rare earth issues, develop reserves, but is concerned about the time needed to establish a new supply chain.
The Trump administration is taking a series of unconventional measures to ensure the supply of minerals critical to automakers, jet engine manufacturers, weapons manufacturers, and data centers, as the Chinese government is using its control over rare earth exports in a way that could "weaken" global industries.
Over the past few months, the government has taken stakes in several mining and mineral companies. The government has also talked about establishing a strategic reserve of rare earths and using price controls and tariffs to support domestic producers.
On Monday, the United States announced a strategic agreement with Australia to invest billions of dollars to develop mineral supplies. It is expected that this issue will be on the agenda of the G7 meeting to be held in Canada at the end of this month. Some analysts have praised the government's efforts to find new ways to reduce the reliance on China that has existed throughout the terms of previous presidents.
But they also warned that these measures are unlikely to quickly resolve the serious reliance on Chinese mineral supplies. Building mines, refineries, and factories that can truly replace Chinese supplies may take years - even if foreign producers can obtain the required machinery and technology, which the Chinese government has already proposed to control.
These investments require significant funds and there is a risk that taxpayer money may go to unproven companies that may fail. China mines 70% of the world's rare earths and chemically processes 90% of the world's rare earths.
Original: www.toutiao.com/article/1847082457940044/
Statement: This article represents the views of the author himself.