Why China Has Banned Export of Rare Minerals The production of cutting-edge technology like smartphones, electric vehicles, and military hardware depends heavily on rare minerals, commonly known as rare earth elements. Why China Has Banned the Export of Rare Minerals China has decided to prohibit the sale of certain rare minerals to the US and India, among other nations. This action is a component of the expanding “tech wars” between the world’s superpowers. Let’s take a closer look at this subject.
What Are Rare Minerals?
Rare earthly minerals include gallium and germanium. They are found in cutting-edge products including computer processors, solar panels, and missiles. Despite being referred to as “rare,” these minerals are widespread. They are costly and challenging to mine and process, though.
Why Is China Important in Rare Minerals?
The world’s biggest producer of rare minerals is China. Over 70% of the world’s supply of these resources is under its control. China is highly dominant in this market because it has developed sophisticated technologies to mine and treat these minerals throughout the years.
The Export Ban by China
China ceased exporting gallium and germanium to foreign nations in July 2023. The production of semiconductors, the “brains” of electrical gadgets, depends heavily on these minerals. As a result, purchasing certain minerals from China now requires specific authorization from other nations.
Why Did China Ban Exports
Growing tensions with nations like the US, India, and Japan are the reason behind China’s export embargo. By creating their supply networks, these countries are attempting to lessen their reliance on China for rare minerals. China is using the embargo to demonstrate its dominance in this crucial field.
Tech Wars’ Function
The rivalry between nations to control technological businesses is referred to as “tech wars.” Chinese firms like Huawei have been denied access to cutting-edge technologies by the US and its allies. China is retaliating in this rivalry by leveraging its dominance over rare minerals as a weapon.
Effect on International Technology
For companies that depend on rare minerals, the restriction has caused issues. It may now take years for nations like the US and India to develop alternatives or discover new sources. Electronics manufacturing, green energy initiatives, and even military system development may be slowed down as a result.
What Are the Reactions in Other Countries?
Numerous nations are attempting to lessen their reliance on China. For instance:
The United States is investing in the mining and processing of rare minerals.
India is working with other nations and researching its reserves.
Rare mineral output is rising in Canada and Australia.
Difficulties in Ending Dependency
Although it is difficult, other nations are attempting to establish their supply networks. Rare minerals are costly, environmentally damaging, and need sophisticated equipment to extract and process. This makes it challenging to swiftly replace China.
The Supply of Rare Minerals in the Future
According to experts, the need for rare minerals will continue to climb globally, particularly as electric cars and alternative energy sources become more popular. Nations will need to make investments.
In Last
The significance of rare minerals in the global technology sector is demonstrated by China’s export prohibition on them. It serves as a reminder that in order for nations to remain competitive in the tech wars, they must protect their own supply chains. Although this restriction presents difficulties, it also encourages countries like India to prioritize innovation and independence, which may have long-term advantages.
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