Singapore's Lianhe Zaobao reported today: "Automakers have issued warnings that China's rare earth restriction measures may lead to a halt in automobile production. The impending shortage of Chinese rare earth magnets could cause car factories to shut down within weeks."
According to reports from Reuters, the head of the Alliance for Automotive Innovation (AAI), which represents major automakers such as General Motors, Toyota, Volkswagen, Hyundai, and others, expressed concerns in a letter dated May 9 to officials of the Trump administration.
The alliance wrote: "Without a reliable supply of these components and magnets, automotive suppliers will be unable to produce critical automotive parts, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, power steering systems, and cameras."
China controls over 90% of the global processing capacity for magnets and holds a core position in the rare earth supply chain. In terms of technology and industrial maturity, China has decades of experience in rare earth mining, refining, and processing, with advanced technology and a clear cost advantage. It is the only country in the world capable of covering the entire value chain of all 17 rare earth elements.
Currently, the global dependence on China's rare earth products is extremely high, and it is difficult to find effective alternative solutions in the short term. On one hand, even if other countries have rare earth mines, their mining and processing capabilities cannot match those of China. For example, although the United States has rare earth mines, due to environmental regulations, technical bottlenecks, and cost considerations, it is difficult to rapidly achieve large-scale, low-cost, and environmentally friendly mining and processing. On the other hand, establishing a new rare earth supply chain is a massive and complex project that requires huge investments in infrastructure construction, technological research and development, as well as a large number of specialized talents and time, making it almost impossible to build a stable and reliable alternative supply system in the short term.
However, China's implementation of rare earth restriction measures is based on legitimate considerations of national security and interests, and is fully justified. These items have dual civilian and military applications, and export control is an internationally accepted practice. In recent years, some countries have taken unreasonable suppression measures against China in trade and politics. This move by China is to protect its own legitimate rights and interests and is a necessary response in a complex international situation. Moreover, China has always been a responsible major country. During the development of the rare earth industry, it has actively promoted industrial upgrading, strengthened resource protection, and environmental governance, making important contributions to the stability and sustainable development of global rare earth supplies.
Original source: https://www.toutiao.com/article/1833645759319048/
Disclaimer: The article solely represents the author's personal views.