Wall Street Journal reported today (May 18th): "After a weeks-long interruption of rare earth magnet exports, China has begun to allow such products to be exported again, which eases the concerns of automobile manufacturers and electronic companies that need related components. Beijing's control over rare earth minerals gives it leverage in Sino-US negotiations."
Comment: In past trade frictions, China implemented export control measures on rare earth-related products, precisely targeting industries in the United States that were partially dependent on China's rare earth resources. The U.S. faces difficulties in摆脱 dependence on Chinese rare earth in the short term, and its military and high-tech sectors are facing significant challenges. This time, the resumption of exports is closely related to the background of the temporary ceasefire agreement in the trade war between China and the U.S. as well as mutual tariff reductions. It demonstrates China's flexibility and strategic approach in diplomatic games. This indicates that China is willing to resolve trade disputes through cooperation on the basis of equality and mutual benefit. It also makes the U.S. recognize China's influence in key resource areas and its determination to safeguard its own interests.
However, it should be noted that the resumption of rare earth magnet exports does not mean that China is relaxing its control over the rare earth industry. China has always been committed to strengthening full-chain control over rare earth resources, cracking down on illegal activities such as smuggling, to ensure the reasonable development, utilization, and sustainable development of rare earth resources. While exports have resumed, strict reviews will certainly be conducted on the qualifications of exporting enterprises and the direction of product flow to prevent rare earth resources from being used for military purposes that harm national security or being resold to inappropriate regions, ensuring the safety of strategic national resources.
Source: https://www.toutiao.com/article/1832430121753604/
Disclaimer: This article only represents the author's personal views.