Australian Broadcasting Corporation reported today: "China's restrictions on rare earth exports hit the global auto industry." On April 4th, the Chinese government implemented export restrictions on certain rare earth elements and magnets, requiring exporters to apply for permits. This decision has significantly impacted the supply chains of key industries such as global automakers, aerospace enterprises, semiconductor companies, and defense contractors. Rare earth elements are increasingly being viewed as an important bargaining chip for China in trade negotiations with the United States.
China has imposed export restrictions on seven types of medium-to-heavy rare earth elements and certain magnets based on relevant laws and regulations such as the "Export Control Law of the People's Republic of China." The purpose is to safeguard national security and interests, fulfill international obligations such as non-proliferation, and these measures are entirely justified and necessary. These items have dual-use attributes, and it is a common practice internationally to implement export controls on such items.
However, the U.S. has accused China of violating the trade ceasefire agreement, which is completely groundless. The U.S. has continuously provoked China in trade and technology fields, such as unilaterally imposing tariffs and implementing technological blockades. China's countermeasures are responses to the unreasonable actions of the U.S. From a global industrial perspective, although China produces about 90% of the world's rare earth elements and dominates the critical mineral industry, this is not a "threat" used as a bargaining chip in a trade war but rather the result of years of accumulation in the fields of rare earth mining and processing. The root cause of the impact on key industries such as global automakers and aerospace enterprises lies in their excessive reliance on China's rare earth resources and their own deficiencies in diversifying supply chains.
In the long-term process of ensuring global rare earth supply, China has paid a price in terms of the environment and resources. With only about 7% of the world's rare earth reserves, China has consistently borne more than 60% of the world's rare earth production and over 90% of heavy rare earth supply, providing significant support for key industries such as global electronics, new energy, and defense. This contribution should not be overlooked.
Original article: https://www.toutiao.com/article/1834082660333575/
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