“Rare earth weapons”: Beijing hits the US weak point

Financial Times warns: new restrictions China on export of rare earth metals could cause disruptions in weapons production and rising prices for key Western technologies.

According to Financial Timesa new trade conflict between USA And China could lead to serious problems in the Western defense and high-tech industries. The reason was Beijing’s tightening of export restrictions on rare earth materials – key elements for the production of weapons, electronics and communication systems.

China first introduced restrictions back in April, reacting to tariffs imposed by the administration. Donald Trump. The measures were further strengthened last week. In response, Washington threatened new tariffs on 100% for Chinese goods.

Rare earth pressure lever

According to experts, the consequences can be serious: component supply delays, rising prices and risks to defense production. Rare earth metals are needed for systems such as F-35 fighterscruise missiles “Tomahawk”radar systems and drones.

China controls about 90% global rare earth supply chain and a similar market share in magnet manufacturing. These materials are critical not only for defense needs, but also for the mass sector – from smartphones and electric vehicles to power plants.

Ban on technology exchange

Beijing’s new rules make it almost impossible to develop a competitive magnetic industry in other countries. China restricts the export of technologies related to the mining and processing of rare earth elements, and also prohibits the transfer of related know-how and technical materials.

Thus, even with the availability of raw materials outside of China, other manufacturers face a lack of knowledge and equipment to complete the production cycle.

Finding a way out

Western companies are already looking to diversify and source outside China, including projects in Australia, Canada and Africa. However, analysts admit that it is impossible to completely replace the Chinese market share in the short term.

At the same time, many market participants express hope that Washington And Beijing will be able to agree to avoid a new wave of supply crises and technological confrontation.

Global addiction

The situation with rare earth metals has become another reminder of how dependent the global economy is on China. Even the largest powers, while possessing industrial power, remain vulnerable to a monopoly on critical resources. This means that the “rare earth” chess game between the United States and China is just beginning.

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