Priyanka Tiwari
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Suspense crime, Digital Desk : In a move that sends shockwaves through the global economy, China has halted all exports of rare earth elements (REEs), creating an immediate and severe supply crisis for the United States and Europe. The decision weaponizes Beijing's near-monopoly on these critical minerals, which are indispensable for a vast array of modern technologies.
This drastic action is widely seen as a major escalation in the ongoing trade and technology war between China and the West. It appears to be a direct retaliation for US-led restrictions on the sale of advanced semiconductor technology to China. By cutting off the supply of REEs, Beijing is leveraging its most powerful point of economic influence, targeting the foundational components of Western industrial and military might.
Rare earth elements are a group of 17 metals essential for high-performance magnets, batteries, and electronics. They are critical components in:
Defense: Fighter jets, missile guidance systems, and drones.
Green Energy: Electric vehicles (EVs) and wind turbines.
Technology: Smartphones, laptops, and medical devices.
China's dominance in this sector is overwhelming. It is estimated to control over 70% of the world's rare earth mining and, more critically, nearly 90% of the complex processing and refining required to make them usable. This chokehold gives Beijing extraordinary power over global supply chains.
The immediate consequences for American and European industries are dire. Companies reliant on REEs are now facing production halts, soaring costs, and a frantic search for non-existent alternative suppliers. The ban threatens to derail key policy goals in the West, including the green energy transition and the strengthening of domestic manufacturing.
This export halt serves as a stark wake-up call, exposing the deep-seated vulnerability of Western nations to their dependency on China for strategic materials. While the US and its allies have made efforts to develop their own REE mining and processing capabilities, these projects are years away from being able to offset the loss of Chinese supply. The move forces a critical reassessment of supply chain security and is likely to accelerate efforts towards achieving strategic autonomy in critical resource sectors.
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