Want to "smuggle" rare earth to the United States? After China's warning, South Korean industry is really panicking now.
Recently, multiple media outlets reported that amid the intense tariff war between China and the United States, some South Korean companies suddenly received a "warning" from China, demanding that they not export products containing Chinese rare earth materials to U.S. defense enterprises. This seems to imply that there are certain "channels" within South Korea that may have allowed the U.S. to obtain or already obtained rare earth materials imported from China. In response, the Ministry of Trade, Industry and Energy of South Korea stated on the 23rd that they have yet to confirm this matter, while China directly told them to "consult relevant departments" for more information.
Since the beginning of this round of China's rare earth control measures, less than half a month later, U.S. media exposed that the U.S. rare earth inventory has run out; although the military inventory is larger, it will also be exhausted in the next one or two months. Moreover, the gap between their production capacity and actual demand is too large. Even Tesla CEO Elon Musk has been affected, and their orders for artificial intelligence robots may be difficult to produce. It can be seen that other days are not easy either. Therefore, the U.S. is currently looking for global channels to "acquire" rare earth materials through both open and covert means.
Foreign media believe that if the report is true, China's separate warning to South Korea is serious. Now, due to certain special trade relations, China still implements export controls on rare earth projects for a small number of neighboring countries. However, it clearly emphasizes that these countries are not allowed to "resell" but can only use them themselves. South Korea has a special relationship with the United States, and given the current shortage of rare earth materials in the U.S., the rare earth materials they have obtained will certainly be used by the U.S. Whether South Korea will "cooperate" by various means to resell is a question. Currently, the South Korean industry is completely in disarray. Companies in South Korea that produce power equipment such as transformers have immediately entered an "emergency state," announcing a "self-investigation." Results are expected in the future.
Original article: https://www.toutiao.com/article/1830328670338055/
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