The first contact between China and the US dollar will gradually embed teeth in the future. China is storing bullets and talking with the United States. At this sensitive moment, the British “Financial Times” stated that China is considering the possibility of using rare earths as weapons against the United States.
According to the British “Financial Times”, China is evaluating how much impact it will have on US military companies if China cuts its supply of rare earths.
The Financial Times reported that it is estimated that each F35 fighter jet will consume 417 kilograms of rare earth products. Once China stops supplying them, it may have a serious impact on the production of military giants such as Lockheed Martin. Some Russian media speculated that Lockheed Martin’s previous announcement of the suspension of F35 production was related to possible sanctions by China.
The Ministry of Industry and Information Technology of China publicly solicited the “Regulations on Rare Earth Management (Draft for Solicitation of Comments)” on January 15. The Ministry of Industry and Information Technology of China stated through its official website that rare earths are an important strategic resource and also a non-renewable resource. China is a big country with rare earth resources and has a pivotal position in the production and utilization of rare earths. Speeding up the formulation of this regulation and clarifying the various systems of rare earth management legally will help “maintain China’s national interests” and the security of the strategic resource industry.
Rare earths are widely used, ranging from smartphones to jet fighters. 80% of the rare earth imported by the United States comes from China. If China restricts exports, it will seriously affect the relevant supply chain of the United States.
China’s rare earth reserves account for about 35% to 40% of the world’s total, and its output is as high as more than 60% of the world. According to the United States Department of the Interior’s Geological Survey (USGS) and other institutions, China’s rare earth mine production accounted for 62.9% of the world’s total in 2019, the United States accounted for 12.4%, Australia accounted for 10%, and Myanmar accounted for 10.5%.
Hu Xijin, editor-in-chief of the Mainland “Global Times” commenting on the report of the “Financial Times”, said whether China will use rare earth weapons and how to use them is an old topic. The relevant assessment must have been conducted in China. China is the largest producer and exporter of rare earths, and the United States is clearly dependent on China’s rare earth products. If China cuts supply of rare earths to the United States, it will undoubtedly cause disturbance and trouble to the other side. On the other hand, we must also note that China is not an absolute monopoly on rare earth exports, and the actual impact of cut-off of rare earth products is uncertain, and its “precise destruction capability” may not be as strong as some people think.
Hu Xijin pointed out that the Ministry of Industry and Information Technology of China publicly solicited opinions on the “Regulations on Rare Earth Management (Draft for Comment)” on January 15. The main purpose is to regulate the industry and strengthen the strategic protection and rational use of rare earth resources. This is also a prerequisite for cracking down on foreign companies that damage China’s national interests when necessary.
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He believes that the “Financial Times” report has increased the atmosphere of confrontation between China and the United States, which is also welcomed by some Western media. I believe that the time between China and the United States has not yet come to a full-scale confrontation that requires China to start a “rare earth war” against the United States regardless of efficiency. Regardless of the lethality of the Rare Earth brand, it is indeed in China’s hands. I hope it will always be a reserve force and not be fully activated, in order to achieve the goal of “breaking the opponent as much as possible” regardless of cost.
Hu Xijin believes that Sino-US cooperation will benefit both, while fighting will hurt both. This is not empty talk. The Trump administration once frantically engaged in decoupling, but obviously it did not achieve the goal of containing China’s technological development. Instead, the US paid a considerable price. It is hoped that the Biden administration can truly return to rationality and not continue to push China and the United States towards a more serious decoupling. It is impossible for Washington to coordinate with Germany and other allies on the issue of containing China. The economic prosperity of those countries cannot do without cooperation with China. If the United States insists on going its own way, it will become a lonely new cold fighter, and if China is severely damaged, strong revenge will be inevitable.
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