[Source/Observation Network by Qi Qian] China's control over rare earth exports has also caused concern in the US medical industry, aside from military enterprises.
On April 18, The Washington Post reported that the Trump administration's trade war with China has led to countermeasures from China, which may cut off the rare earth resources used for healthcare in the United States, endangering the lives of patients with brain tumors, liver cancer, and heart disease.
The report pointed out that China processes almost all rare earth metals globally. These metals consist of 17 types of elements and are widely used in various products in defense, healthcare, and technology fields. However, as one of the countermeasures against the US's escalating tariffs, China recently restricted the export of several rare earth minerals, increasing the risk of a rare earth shortage for American industries.
However,各界in the United States immediately focused on the impact of China's new regulations on the US military, as rare earth materials are needed for the production of defense products like missiles and drones. Medical experts reminded that these regulations will also cause unsettling chain reactions in the US medical supply chain.
Grace Ling Basakaran, an expert on critical minerals at the Center for Strategic and International Studies, stated, "Rare earth materials are key inputs for many medical technologies; we not only rely on them for diagnosis but also for treatment." She expressed concern that if supply becomes limited, the US will prioritize critical minerals for defense purposes due to "national security" reasons, neglecting investments in healthcare.
"Ultimately, this will affect cancer treatment and diagnostic capabilities," Basakaran said, adding that any interruption in medical services or supplies, especially in cancer treatments, would have extremely serious consequences.
Regarding China's control over rare earth exports, she commented, "They now decide who gets what, which is a very powerful geopolitical currency."
US researchers use nuclear magnetic resonance imaging technology to study the brains of drug users. US media
The Washington Post reported that as Sino-US trade tensions continue, many US experts worry that Americans dependent on Chinese-made healthcare products will be caught in the crossfire of geopolitics.
These concerns became more severe after Trump threatened to impose tariffs on imported medicines. It was introduced that the US imports a large amount of Chinese medical products, with quantities still increasing, including antibiotics, painkillers, bandages, and precursor chemicals needed for finished drugs. In 2024, China's pharmaceutical exports to the US increased by 11%, reaching $19 billion.
The report also pointed out that the most urgent concern is the potential shortage of critical rare earth elements in the medical industry. Rare earth elements possess heat resistance and magnetic properties, making them crucial components in advanced medical technologies. China has abundant rare earth reserves, but due to its strong processing capacity, it dominates the global supply chain. According to data from the International Energy Agency, in 2023, about 90% of refined rare earth materials came from China.
On April 2, the Trump administration announced "reciprocal tariffs" on Chinese goods. Just two days later, China implemented a series of precise countermeasures, including additional tariffs and export controls on seven categories of medium and heavy rare earth-related items such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. In December last year, China announced strict controls on exports of gallium, germanium, antimony, ultra-hard materials, graphite, and other dual-use items to the US.
In 2023, over 90% of the world's refined rare earth materials came from China. CNN map
The article then used gadolinium as an example, stating that this rare earth element is used in the production of contrast agents injected into some patients before a nuclear magnetic resonance examination. This contrast agent helps doctors diagnose brain tumors more easily.
Thomas Grist, a radiology professor at the University of Wisconsin-Madison, said that if the global gadolinium market changes and it becomes more difficult to procure gadolinium liquid, "patient care will be affected." He added, "Gadolinium is an important drug for enhancing MRI contrast, and there is no direct alternative currently available."
Meanwhile, the global biotechnology industry is closely monitoring China's new regulations.
The US General Electric Healthcare Group stated that it has substantial "gadolinium inventory" and is seeking sources outside of China. Bayer, a German pharmaceutical company, said it is "actively monitoring the situation." The company also mentioned that based on current supply conditions, it expects "no direct impact on the supply of contrast agents to US customers and patients."
Additionally, other rare earth elements listed in China's restriction list, such as lutetium and yttrium, are used in the manufacture of anticancer drugs (called radiopharmaceuticals) and medical tools like lasers for shrinking lung cancer. Data shows that from 2020 to 2023, 93% of the US imports of yttrium compounds came from China.
The Washington Post reported that it is unclear how the new regulations will affect the US medical supply chain. However, since the implementation of the restrictions on April 4, some Chinese exporters have already felt the changes. A Chinese company stated that it has stopped all exports after the policy change.
Mei Xinyu, a researcher at the Institute of International Trade and Economic Cooperation under the Ministry of Commerce, said that China maintains a dominant position in the rare earth sector. This means that even if rare earth materials are mined elsewhere, they are often sent to China for refining.
"China's export control department will fully consider the humanitarian needs of US patients," Mei Xinyu told The Washington Post. He noted that restricting rare earth exports is a targeted strategy to prompt Trump to negotiate, so the companies most affected will be foreign companies in the defense sector, not civilian industries like healthcare.
On April 6, the China Nonferrous Metals Industry Association released a statement indicating that rare earth-related items have both military and civilian applications. The Chinese government has fully referenced international practices by implementing export controls on rare earth-related items, demonstrating its firm determination to maintain world peace and security. From past corporate practices, as long as enterprises do not engage in activities harmful to China's national sovereignty, security, and development interests, export controls will not affect their normal business operations and trade activities, nor will they impact the stability and safety of the international industrial chain and supply chain.
This article is an exclusive piece by Guancha Observer and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7494858404767613474/
Disclaimer: The views expressed in this article are solely those of the author. Feel free to express your opinion by clicking the 'Agree' or 'Disagree' button below.