Beijing Tightens Grip on Rare Earth Metals, Declaring State Ownership
In a move that is likely to escalate tensions with the US, Beijing has enacted new regulations officially declaring rare earth metals as the property of the Chinese state. Rare earth elements are crucial minerals used in the production of advanced technologies such as semiconductors, electric vehicles, and wind turbines.
Premier Li Qiang of the State Council signed the order on June 29, which is set to come into effect on October 1. The regulations aim to centralize the development of the rare earth industry, control mining and smelting activities, and establish a product traceability system for better management of these critical minerals.
While Chinese officials assert that the new controls are intended to promote safety, innovation, and environmentally friendly practices, the move is likely to be interpreted as a strategic maneuver to assert dominance over key resources on the global stage. China currently produces 60 percent of the world’s rare earths and processes nearly 90 percent of them, giving the country a significant advantage in this industry.
This latest development comes amidst a backdrop of escalating tech wars between China and the US. Last year, China imposed bans on the export of rare earth extraction technologies and restricted exports of elements essential for semiconductor production. These measures were perceived as retaliatory actions in response to trade restrictions imposed by the US and other nations.
As relations between the two superpowers continue to sour, concerns are rising in the US about the country’s reliance on China for critical minerals. With insufficient stockpiles and limited alternative sources, the US may face significant challenges in ensuring a stable supply chain for rare earth metals in the event of further hostilities.
