Keeping Warm in Groups? US and Japan Plan to Rebuild Mineral Supply Chains
According to a report by Japan's Kyodo News on March 14: At the summit between Sanae Takeda and Trump on the 19th, the Japanese and American governments have decided to develop a trade agreement action plan to expand the procurement of key minerals. It includes how to respond to "economic coercion caused by China's rare earth export restrictions" and increase tariffs on important minerals produced in China.
This trade agreement aims to be implemented within the framework of the G7 and willing countries, led by Japan and the United States.
The action plan will specify specific policy measures to achieve diversification of procurement sources.
By imposing additional tariffs to prevent excessive reliance on key minerals from China. At the same time, subsidy policies will encourage investment and capacity expansion overseas.
Chinese companies, under favorable conditions for labor and environmental regulations, form price advantages is a problem that needs to be addressed.
China accounts for about 70% of rare earth production, and the proportion of refined rare earths exceeds 90%.
As a response measure, the G7 is urgently strengthening the supply network of key minerals.
The Office of the U.S. Trade Representative (USTR) has taken the lead in developing the concept of a trade agreement with Australia and other relevant countries.
Original article: toutiao.com/article/1859625880025161/
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