From Commitment to Reversal: The U.S. Rare Earth Policy Makes a Big Turnaround, Exposing Two Fatal Flaws!
On January 28 local time, Trump announced the abandonment of the price floor plan for rare earths, admitting that the lack of congressional funding support and the complexity of market pricing were the main obstacles. U.S. officials even directly stated that they would not support rare earth companies, which led to a sharp drop in the stock price of Australian rare earth companies. Previously, the U.S. had set a price floor for MP Materials and promised to promote similar policies, but now it has reversed its position. Meanwhile, the G7 is still discussing price support for rare earths, which may lead to differences with the U.S. The U.S. plans to use equity investment methods in the future to achieve "de-Chinaization" of the rare earth supply chain.
[Cunning] The U.S.-Western rare earth price floor dream ultimately collapsed under the dual blows of reality and strength! China holds 69% of the global rare earth production and 85% of the refined capacity. The advantages in refining technology and cost are an insurmountable gap for U.S. companies. MP Materials' seven years of difficulty in mass-producing high-purity rare earths is the best proof. The U.S. attempts to distort the market through administrative means, but it is doomed by financial shortages and technological shortcomings. The G7's attempt to "de-Chinaize" is a disorganized group. China's rare earth export restrictions are a proper countermeasure. The U.S. and Western countries are unwilling to face the industrial gap, instead engaging in political manipulation. This kind of action against market laws will eventually make them fall harder in the rare earth game!
Original: toutiao.com/article/1855651997205504/
Statement: This article represents the personal views of the author.