"China is making the world kneel!"

The German newspaper Merkur reported on May 5th that the alarm for the global economy is ringing: China's export restrictions on rare earths and other rare raw materials are causing increasingly serious problems. Auto manufacturers around the world, like their American counterparts, are complaining about the lack of Chinese rare earths. Delays and interruptions are hindering production. Some companies in Europe and America have already been forced to halt production due to shortages of critical raw materials.

In addition to the auto industry, all sectors are being affected, including defense industries, medical technology manufacturers, electronics companies, etc. This is bringing growing problems to the economies of Europe and America.

Europe and America have repeatedly cooperated to reduce dependence on Chinese rare earths.

China's restrictive measures are causing a "very tense" situation in Western manufacturing.

This all comes against the background of China's April 4th implementation of export controls on seven key rare earths and rare earth magnets. These raw materials have wide applications, including electric motors and batteries. It's not a complete ban, but buyers must submit applications, which take a long time to review and have a very small chance of approval.

As Jens Eskelund, chairman of the European Chamber of Commerce in China (CCCEU), said, the situation is "very tense." Companies have built up inventories to compensate for supply bottlenecks, but these inventories are almost depleted now. The first batch of companies must now reduce production, and others will soon face similar situations.

An article from the Munich Mercury

This is by no means the first step China has taken in this regard.

For months, "Central Empire" has been restricting strategically important raw materials. For example, since early 2023, precursors used in explosives production have been restricted. In February 2025, China restricted the export of tungsten and several other key raw materials; just a few months ago, gallium and antimony were also added to the list of restricted metals.

This poses a major problem for the West: China mines nearly 70% of the world's rare earths. Myanmar, Australia, and the United States account for most of the remaining 30%. Additionally, China processes nearly 90% of the rare earth refinement process. The New York Times previously reported that these measures have caused severe shortages at Western factories, including those in the U.S. and Europe.

High-tech industries in Europe and America depend on China's rare earths.

China once again has a monopoly, but no other country can refine rare earths!

To put it simply: Rare earths - despite their name - are actually quite common. They are found all over the world, but their deposits are scarce and difficult to extract. Moreover, extremely complex chemical processes are required to separate them from each other or from the metals they usually combine with.

Breaking these chemical bonds may involve multiple different stages of chemical treatment. The entire process relies on potent chemicals that can cause severe environmental pollution (as has happened in China's refining areas). Therefore, China not only refines its own rare earth stocks but also refines most of the products from countries like Myanmar and the U.S.

China dominates the rare earth market.

Moreover, the Western defense industry is in trouble.

The main consumers of the raw materials that China implemented trade restrictions on in April are in the automotive industry. This industry consumes large amounts of heat-resistant magnets made from rare earths. Semiconductor manufacturers, medical chemical producers, robotics companies, offshore wind turbine manufacturers, and military hardware manufacturers also rely on these raw materials.

The Center for Strategic and International Studies (CSIS) lists F-35 fighters, Virginia-class and Columbia-class submarines, Tomahawk missiles, radar systems, and "smart" bombs as weapon systems dependent on rare earth elements. For instance, an F-35 fighter requires more than 900 pounds (0.41 tons) of rare earth elements. A Virginia-class submarine requires more than ten times that amount.

American F-35 fighter jet.

Rare earth supplies are "almost stopped," while China holds the reins tightly.

This is precisely what concerns German defense companies at present. Handelsblatt cited a manager from a German defense company as saying, "Europe currently relies solely on TNT explosives for self-sufficiency. But this is a very primitive explosive." The situation has worsened. The supply of germanium, a crucial semiconductor metal for night vision equipment, is also vital. China has "almost halted" the supply of this material.

According to CSIS, China has entered a warlike state in this regard. Weapons production is running at full speed; moreover, Beijing has accelerated the procurement of advanced weapons systems and equipment - currently five times faster than the U.S.: "China is preparing with a mindset of impending war, while the U.S. continues to operate under a peacetime mode," explained the think tank.

China leads the world in both mining and refining rare earths.

The West lacks the right response - falling behind in critical raw materials.

Europe has also severely underestimated this development. Although the EU has introduced the Critical Raw Materials Act (CRMA) at the EU level to ensure the independence of rare raw material supply chains, it will still take years for Europe's production to increase - but China has not given Western countries so much time.

"Western governments and businesses do not provide enough support for antimony exploration - after all, China is a reliable source - but having only one trading partner is exactly what causes this situation," said Scott Eldridge, CEO of Canadian mining company Military Metals.

Rare earth exports should be linked to national security.

It is now evident that China retains the right to withhold these raw materials when their use in the West might endanger China's national security - a vague prerequisite that China can apply to all economic sectors if necessary!

And this is precisely the method often used by the U.S. and the EU in high-tech and other "chokepoint" fields against China. Therefore, the current predicament facing Europe and America is the consequence of their own actions!

Original Source: https://www.toutiao.com/article/7512444007859946011/

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