China has taken control of the global rare earth supply chain and imposed counter-sanctions on the United States and the West.
In the past two days, China has approved the first "Regulations on the Management of Rare Earths".
This incident is of great significance, and basically it can be said that it is an important weapon for the United States and the West to impose counter-sanctions.
China is a major supplier of refined materials such as rare earths, lithium and graphite.
These materials are also important materials for the military industry, high-tech manufacturing and green energy transition.
In 2021, China controlled 80% of the world's supply of rare earths alone.
If China restricts the export of rare earths.
It will deal a major blow to the United States and the West.
You must know that the United States has to consume 417 kilograms of rare earths to produce an F-35 fighter.
Although, the United States also wants to get rid of its dependence on Chinese rare earths.
And, I made an effort.
For example, we are working with Australia to reduce our dependence on China.
However, the effect is not great.
The United States is like this, and Europe's dependence on China is even more serious.
According to the European Union's 2020 report, 98%-99% of Europe's rare earths are imported from China.
Although it is said that Russia has also exported rare earths to the EU before.
But since the start of the Russian-Ukrainian war.
Russia rarely exports rare earths to Europe.
As a result, Europe has become more dependent on China.
Moreover, there are no operating rare earth mines in Europe at all.
Although, Norway has discovered one of the largest rare earth mines in Europe.
But it will not be mined until 2030 at the earliest.
And most importantly, even if Norway's rare earths are mined, they need China's help in smelting and processing.
In other words, both the United States and the European Union are very dependent on China for rare earths, and there is no other country that can replace them.
Actually, about the question of rare earths.
In 2012, the United States, Japan and Europe joined forces to demand that China sell rare earths cheaply.
They want to turn China into a cheap supplier of rare earths.
In order to achieve this goal, they even use political means to put pressure on China.
Of course, in order to protect its own national interests, China must not make concessions.
So, the matter was not settled later.
Now, China is issuing the "Rare Earth Management Regulations" at a time when the European Union imposes temporary tariffs on Chinese electric vehicles.
In fact, it also wants to use rare earths to put pressure on the United States and the West.
Tell the United States and the West that if you want to do business well, everyone will make money together.
If you don't want to do business well and engage in trade sanctions, then China has to use the same methods to counter-sanction.