RE: RE Storm?1 Dec 2020 16:46
'Cut to zero'
Now the law has passed, the price of rare earths have continued to rise, with some China hawks calling for rare earth exports to the US and Japan to be cut to zero, according to Phoenix TV.
From late November, the three main types of rare earths – terbium oxide, praseodymium oxide and dysprosium oxide – rose to 8-year, 3-year, and 5-year highs, respectively. Rare earths are regarded as strategic materials due to the Sino-US technology war, so this is a key factor in why they face export controls and why the price for these elements has soared.
People in various sectors around the world are understandably concerned, because rare earths are essential raw materials for many military, and high-tech industries, and China accounts for up to 95% of the world’s exports of rare earths, some of it imported, processed and re-exported.
Judging from the content of the Export Control Law, China's national security is mainly protected by the export of sensitive materials and technologies on the control list, and its applicable objects include all enterprises in China and foreign-funded enterprises.
According to numerous local media reports, China wants to manage the export of rare earths, “which will make it difficult for American companies to obtain cheap and high-quality rare earth resources as before.”
This is seen as direct retaliation for US restrictions on Chinese flagship firms such as Huawei, and cutting access to modern technologies such as top-end computer chips. Of course, other countries besides the USA use rare earths. And many have been working to develop mines and processing facilities.
The United States allocated $209 million for development of its rare earth industry in 2019. And in November 2018, the United States and Australia, which had at least a sixth of the world's rare earth reserves at that time, started cooperation. They have identified 15 mineral development projects that include rare earths.
South Korea, Ireland and others are making similar moves.