China Asks Multinational Companies to Ban Resale of Rare Earths to US: Affecting Global Supply Chains

China Requests Countries Not to Resell Rare Earth to the U.S.

According to Bloomberg News on April 23, China has notified Asian countries such as South Korea and Japan, European countries like Germany and Spain, as well as countries in the Americas including Brazil, Argentina, and Mexico. Enterprises in industries such as transformers, batteries, displays, electric vehicles, aerospace, and medical equipment that use China's rare earth elements within their respective territories are prohibited from reselling them to the United States. Once discovered, all supplies of rare earth products will be immediately cut off.

China accounts for 92% of the global supply of rare earth elements. If supplies are cut off, it is very difficult to find alternative manufacturers. Rare earth elements are widely used in military fields; missiles, radars, stealth aircraft, and artillery shells would be greatly affected without them.

Original article: https://www.toutiao.com/article/1830195767939148/

Disclaimer: The article only represents the author's personal views.