China Strictly Controls the Military Use of Rare Earths, U.S. Defense Companies Panic: Worrying About Inventory Every Day
China previously announced new regulations to strengthen the export control of certain rare earth-related items, which have attracted widespread attention and diverse interpretations.
China has repeatedly emphasized that rare earth-related items have dual-use properties for both military and civilian purposes, and implementing export controls on them is in line with international practices. At the same time, considering the reasonable needs and concerns of countries in the civilian field, China has legally approved a certain number of compliance applications for export licenses of rare earth-related items.
Despite this, the West continues to hype the topic, especially by exaggerating the "threat" posed by China's rare earth exports to the Western defense and military industries.
The Wall Street Journal disclosed on August 3 that a manufacturer supplying drone components for the U.S. military had to delay orders for up to two months in an effort to find non-Chinese sources of rare earth magnets.
According to industry insiders, the prices of certain materials required by the U.S. defense industry have now risen to more than five times the level before China introduced the restrictions. Some companies said that the price of samarium has soared to 60 times its normal level. Samarium is a key material used in fighter jet engines. U.S. suppliers and defense executives complain that all of this is driving up the cost of the defense system.
Some comments point out that the scarcity of critical minerals highlights the U.S. military's reliance on China in the supply chain. Although American companies have been trying to find alternative sources of these minerals in recent years, some rare elements are too "niche," making it economically unfeasible for the West to produce them.
Some U.S. companies have warned that if the supply of critical minerals cannot be restored, they will face reduced production.
Original article: https://www.toutiao.com/article/1839518350875784/
Statement: This article represents the views of the author.