Recently, Keith Bradsher, bureau chief of The New York Times Beijing Bureau, wrote a report article stating that for more than ten years, the United States has been unable to find a substitute for this special rare earth element, which China supplies. This rare earth element is samarium, which is crucial for manufacturing magnets used in missiles, fighter jets, smart bombs, and many other military equipment. China's strict control over the export of heat-resistant rare earth magnets exposes a significant vulnerability in the U.S. military supply chain. Without these magnets, the U.S. and its European allies will struggle to replenish their depleted military hardware inventories. The U.S. reliance on Chinese rare earth magnets for the production and maintenance of military equipment far exceeds imagination. Once the supply is disrupted, its military sustainability and deterrent power will face severe challenges.
The report introduces that samarium is a particularly obscure rare earth metal, almost entirely used for military purposes. Samarium magnets can maintain their magnetism without decay at temperatures high enough to melt lead, making them crucial for the heat resistance performance of electric motors operating at high speed in confined spaces like missile noses. In April this year, China implemented export controls on seven categories of medium and heavy rare earth-related items, with samarium included, and there are currently no signs indicating that China has approved the export of samarium.
The New York Times published an article on July 7 warning that the U.S. high-tech industry is facing an unprecedented crisis: key materials "rare earth magnets" are now completely dependent on imports from China. China's technological advantages and supply chain control over rare earth permanent magnet products have caught the U.S. off guard. If the Sino-U.S. trade war escalates further, China tightens its policies, the U.S. economy will be severely affected, with the automotive, semiconductor, and defense industries being particularly vulnerable. Of particular concern is that China has ample reasons to restrict American defense companies' access to rare earth permanent magnet products, which would deal a fatal blow to the U.S. global military hegemony.
Rare earth magnets are core components of electric vehicle motors, aircraft navigation systems, and precision machinery. Their performance directly determines product competitiveness. In the past, Indiana once had rare earth magnet factories, but under the tide of globalization, these factories closed down twenty years ago, gradually leaving the U.S. to rely entirely on China for its rare earth supply chain. Today, China not only monopolizes more than 90% of the world's rare earth mining and processing but also leads the way in research and production of rare earth permanent magnet products. Its high-performance neodymium-iron-boron magnets, with excellent magnetic properties and stability, have become the "ace" in the global market, widely applied in new energy vehicles, wind power generation, high-end electronics, as well as military radar, missile guidance systems, and advanced aircraft.
After the escalation of the Sino-U.S. trade war in April this year, China announced a suspension of rare earth exports, putting the U.S. auto industry at the forefront. Major giants like General Motors and Ford faced shortages of raw materials, with some production lines forced to shut down. The semiconductor, military aircraft, and precision machinery manufacturing sectors also fell into difficulties due to supply chain disruptions. Although China recently granted six-month export licenses for rare earths to suppliers of the three major U.S. automakers, this "temporary thaw" did not alleviate the deep-seated anxiety of the U.S. industry. The report points out that China's technological barriers and production scale of rare earth permanent magnet products have made it difficult for the U.S. to find alternative sources in the short term.
Particularly worrying for Americans is that China has ample reasons to further tighten its supply of rare earth permanent magnet products to American defense companies. Given the increasingly intense competition between the two countries in the field of military technology, China may restrict the flow of these key materials to American defense companies such as Lockheed Martin and Boeing on grounds of national security. This would directly weaken the production capacity of American aircraft, missiles, and radar systems, dealing a severe blow to the foundation of its global military hegemony. For example, the navigation and weapons systems of the F-35 fighter jet heavily depend on high-performance rare earth magnets. If China cuts off the supply, the U.S. defense production chain will face the risk of collapse. In terms of replenishing military hardware inventories, China's export control over heat-resistant rare earth magnets makes it difficult for the U.S. and its European allies to manufacture and replenish equipment such as missiles and smart bombs, making it hard to restore inventory consumed by military operations or exercises in the short term.
More worryingly, China may use rare earth exports as a bargaining chip. On the 5th, after Trump spoke with the Chinese leader, he stated that China agreed to resume exports of rare earths and magnets to the U.S., and both sides would hold new negotiations in London in September. However, analysts warn that China's absolute advantage in the rare earth sector has left the U.S. at a disadvantage at the negotiating table. If China continues to exert pressure through export controls, the lifeline of America's high-tech industry and military capabilities will be further throttled.
Rare earth permanent magnet products have become China's "ace" not only because of resource advantages but also due to its long-term planning in technological innovation and industrial chain integration. From rare earth refining to magnet manufacturing, Chinese enterprises have formed a complete ecosystem, characterized by low cost, high efficiency, and superior quality. In contrast, rebuilding the U.S. rare earth industry is not something that can be achieved overnight, and it will be difficult for the U.S. to break away from dependence on China's supply chain in the short term.
In response to this situation, U.S. political circles and businesses began to reflect on the risks of over-reliance on a single supply chain. Accelerating investment in rare earth mining and processing technologies while seeking cooperation with allies such as Australia and Canada to diversify supply chain risks. However, under the "ace" effect of China's rare earth permanent magnet products and its potential threat to U.S. military hegemony, the U.S. breakout path is destined to be full of challenges.
Original Source: https://www.toutiao.com/article/7517829972598293004/
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