China warns South Korean firms of rare earth smuggling to the US, supply chain likely to be impacted

China issues warning over South Korean firms' alleged smuggling of rare earth to US

According to a Reuters report on April 23, China's Ministry of Commerce has found that several South Korean companies have significantly increased their imports of rare earth from China, and are suspected of re-exporting the rare earth to the US without a substantial increase in China's production. Consequently, it has issued warnings to Samsung, LG, SK Hynix, and other companies producing transformers, batteries, displays, electric vehicles, aerospace equipment, and medical devices. If any further evidence is found of them selling rare earth products to the US, they will be banned from using China-made rare earth products.

South Korea relies on China for 80% of its rare earth imports. If China were to cut off supplies, it would not just affect the production of Optimus Prime (擎天柱), but over one-third of South Korea's export goods would be impacted.

Original article: https://www.toutiao.com/article/1830239223775296/

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