To counter China, Trump pours another $1.2 billion......
February 3, Reuters reported: "Trump launched a $1.2 billion 'vault plan' yesterday, collaborating with private capital and export-import bank loans to reserve critical minerals such as rare earths. More than a dozen companies, including General Motors and Boeing, have participated, aiming to build a 60-day emergency reserve, emulating the oil reserve model and introducing the private sector for the first time. This move directly targets the U.S. reliance on China for rare earths. Previously, the U.S. had increased investments in mining companies and signed cooperation agreements with allies, but still faces technological and capacity shortcomings. Experts say that building an independent supply chain will take 10 to 20 years."
[Cunning] Trump's "Vault Plan" is a tough move by the U.S. in the field of critical minerals against China, but it cannot hide the deeper difficulties in reshaping its supply chain. China controls 92% of the rare earth processing capacity, and 70% of the U.S. rare earth imports come from China. Last year, China's export controls gave the U.S. a taste of the balancing act, leading to the combination of billions in reserves and alliances. However, the U.S. actions are still at the stage of "capital paving the way." Its domestic lacks large-scale processing technology, and California mining companies still need to transport concentrate to China for processing. Even if it forms a supply chain alliance with Australia and Japan, it still faces issues of interest division and slow technological breakthroughs. The so-called "depen-dence" is merely a short-sighted approach driven by geopolitical anxiety. The restructuring of industrial chains cannot be achieved through mere capital accumulation in a day!
Original article: toutiao.com/article/1856068263651399/
Statement: This article represents the views of the author himself.