【By Liu Bai, Observer Net】In recent times, the Trump administration has been actively pushing in the field of critical mineral resources, approaching Australia, Malaysia, and Central Asian countries one after another for cooperation, highlighting deep-seated strategic anxiety.
A report by Hong Kong English media South China Morning Post on November 10 also pointed out that a series of recent actions by the United States, including holding a leaders' summit with resource-rich Central Asian countries and expanding the list of "critical minerals" by the government, all show Washington's eagerness to reduce its reliance on Chinese rare earths before the U.S.-China relations become tense again. A scholar said directly that the U.S. would knock on the door of almost every country in the world if it believes there are rare earths there.
According to data from the U.S. think tank Center for Strategic and International Studies (CSIS), China accounts for about 70% of global rare earth mining and 90% of processing output. These minerals are essential for producing a large number of high-tech products, including cars and fighter jets. During the U.S.-China trade conflict, this dominant position has increasingly become an important bargaining chip for China in negotiations.
Although China has announced a one-year suspension of implementing related export restrictions, U.S. officials continue to search globally for alternative sources of rare earths.
"It would be naive to think that China will not make obtaining rare earths and critical minerals difficult again," said Dexter Roberts, senior researcher at the Global China Center of the Atlantic Council. "The U.S. is not making it easy for China either."
Roberts pointed out that the U.S. has considerable reserves of rare earths, but it may take ten years to put new mines into production in the U.S., especially as environmental groups might challenge it. "You can't just turn on a switch and immediately get supply."
A report from the Atlantic Council last month warned that even if the U.S. takes "aggressive" measures to increase production, it may still not be able to prevent serious supply chain disruptions in time.
Roberts added that these limitations make cooperation agreements with overseas existing mines more attractive. He mentioned that the U.S. had signed a memorandum of understanding on rare earths with Malaysia last month, and Malaysia itself already has mature processing capabilities.
Trump hosted the annual C5+1 Leaders Summit between the U.S. and Central Asian countries in Washington. IC Photo
The U.S. government is intensifying efforts to diversify its supply chains.
On November 6, the U.S. Geological Survey (USGS), an agency under the Department of the Interior, updated the list of "critical minerals," adding 10 elements, including copper, silver, and metallurgical coal.
On the same day, President Trump hosted the annual C5+1 Leaders Summit between the U.S. and five Central Asian countries—Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan—in Washington.
According to U.S. State Department information, this meeting led to an agreement between the U.S. and Uzbekistan, with the U.S. investing up to $400 million to "strengthen the U.S. companies' critical minerals and rare earth supply chains."
In talks between Trump and Kazakh President Tokayev, the U.S. also announced an agreement between American-Australian mining company Cove Capital and Kazakhstan's National Mining Company to develop what is claimed to be "the largest undeveloped tungsten resource." The two sides plan to invest $1.1 billion in mining this metal widely used in aerospace and automotive industries. The project is expected to produce approximately 12,000 tons of tungsten annually. Pini Althaus, CEO of Cove Capital, said, "The U.S. does not believe it is safe."
Gao Zhi Kai, vice director of the Center for China's Globalization (CCG), described it as, "The U.S. would knock on the door of almost every country in the world if it believes there are rare earth reserves there. What the U.S. wants to do, as they say, is to avoid being choked by China."
Since the end of last year, when China imposed strict export restrictions on key minerals, and further restricted the export of rare earth magnets in April this year, U.S. manufacturers and defense contractors have been scrambling to find alternatives. This shortage exposed the vulnerability of the U.S. dependence on China. Afterward, U.S. companies had to obtain approval from China and prove that their products were not used for military purposes.
China has repeatedly emphasized on the issue of rare earth exports that the relevant measures are normal practices to improve China's export control system according to laws and regulations, reflecting China's great power responsibility to maintain world peace and stability. China is committed to maintaining the security and stability of the global supply chain.
After the meeting between the heads of state of China and the U.S., Trump told the media that the dispute over rare earths "has been resolved." But just on November 2, U.S. Treasury Secretary Becerra threatened that if China continues to block rare earth exports, the U.S. may impose additional tariffs on China.
Regarding this, Zhao Ning, spokesperson for the Chinese Foreign Ministry, stated that the Chinese authorities have repeatedly explained their position on the policy of rare earth export controls. The results of the economic and trade consultations in Kuala Lumpur between China and the U.S. fully illustrate that dialogue and cooperation are the correct way, and threats and pressure are not helpful for solving the problem. The two sides should implement the important consensus reached during the meeting between the heads of state in Busan, and inject more certainty and stability into Sino-U.S. economic and trade cooperation and the world economy.
Despite the efforts of the West to try to reduce its reliance on China for rare earths, industry insiders generally believe that this is not something that can be done overnight.
Scott Dunn, co-founder of Noveon Magnetics, told U.S. media that after China announced the implementation of rare earth export controls earlier this year, he received a large number of inquiries, "clients not only required to proceed as planned, but also wanted to increase the production volume several times."
When talking about this, Dunn looked troubled, "some clients' requirements are something that China has achieved through decades of industrial accumulation."
A report in The Wall Street Journal also noticed this trend of investment in rare earths in the West.
The report noted that China's deterrent measures have indeed driven a revival in the Western rare earth industry to some extent. However, regardless of the fact that rebuilding the Western rare earth supply chain requires time, and the industry has already experienced multiple "false booms" in the past, the fact remains that the rare earth industry outside of China lacks experience and professional technology.
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