American officials admit that China's rare earth controls have hit the "Achilles' heel" of the United States! CNN quoted three US government officials as saying that the Trump administration has taken a series of "punitive measures" against China in recent days because the expectation that Chinese authorities would ease restrictions on rare earth mineral exports has been disappointed, causing frustration among US officials.

This week, the US government took action to revoke visas for some Chinese students and suspend the sale of certain key technologies to Chinese companies. CNN reported that after talks between the two sides in Geneva, Switzerland at the beginning of the month, US officials expected China to ease restrictions on rare earth mineral exports, but the reality left them feeling frustrated.

The report pointed out that Washington's decision to restrict technology sales to China and limit the number of Chinese students coming to the US highlights the central role of the trade war in the Trump administration's overall foreign policy towards China. A senior government official described this internal connection by saying it is part of a "unified government strategy."

US officials said that growing concerns within the government over China cutting off rare earth supplies have prompted relevant departments to take extensive actions behind the scenes to seek possible alternatives.

From two perspectives, we can understand why the US is becoming increasingly frustrated. First, regarding the US government's recent actions to revoke some Chinese student visas and suspend the export of key technologies, China has countered through diplomatic, legal, and economic means on multiple dimensions, while consolidating its game advantage with the strategic deterrent power of rare earth control.

Foreign Ministry spokesperson Mao Ning clearly stated at a regular press conference on May 29 that the US side's cancellation of Chinese student visas under the pretext of ideology and national security is a "political and discriminatory approach," which seriously harms the rights of Chinese students and undermines cultural exchanges between China and the US. China has raised representations with the US side and emphasized that America's actions "expose its lies of freedom and openness" and will damage its own international image. The Ministry of Commerce urged the US side on the same day to immediately correct its mistakes and stop discriminatory restrictive measures against China, or China will take further countermeasures.

Secondly, why does the US feel troubled by China's rare earth controls? Because rare earths are not only hailed as the "vitamins" of high-tech industries but also the "lifeline" of defense industries. China's embargo on rare earth exports to Raytheon and Lockheed Martin, companies involved in arms sales to Taiwan, directly affects the production of missile guidance systems and stealth coatings.

According to US Department of Defense assessments, if China completely cuts off rare earth supplies, the US defense industry production lines will be paralyzed within six months. This deterrence makes rare earths a "trump card" for China to counter the US.

China's monopoly position in the rare earth supply chain is irreplaceable. China controls 61% of global rare earth production, 92% of refining capacity, and 100% of heavy rare earth separation capabilities. The US relies on China for 83.7% of its rare earth imports, with a dependence on heavy rare earths as high as 97%. For example, each F-35 fighter jet requires 417 kilograms of rare earth materials, while the processing capacity of the US itself can only handle 15% of the mined amount, with the rest still needing to be refined in China. This structural dependence allows China to influence US defense manufacturing through export controls.

Even without success in cooperating with Lynas of Australia to mass-produce heavy rare earths in Malaysia, the cost is still 22% higher than in China, and stability and delivery cycles cannot compete. Moreover, China uses blockchain traceability and quantum radar detection technology to precisely track the flow of rare earths, further compressing illegal transshipment space.

The US attempting to choke China's semiconductor industry, China imposing rare earth controls on it, can be seen as an equal form of sanctions, nothing more.

China's strategic deterrence formed through rare earth controls essentially reflects the comprehensive embodiment of resource monopolies, technical barriers, and geopolitical games.

In fact, the Financial Times of the UK had warned Trump earlier that Beijing holds the following three cards in the tariff war, including trade, US Treasury bonds, and technological assets, which are sufficient to withstand the US. Regarding technological assets, the report pointed out that the US depends on mainland China for rare earth metals, such as those used in electric vehicle batteries, as China controls more than two-thirds of global rare earth production and more than 90% of processing capabilities, making this a key trump card.

Original article: https://www.toutiao.com/article/1833532432373764/

Disclaimer: This article solely represents the author's personal views.