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Rare earths, China's feared weapon to respond to Donald Trump's trade war

Rare earths, China's feared weapon to respond to Donald Trump's trade war
Chinese inspectors walk past piles of rare earths on a quay at the port of Lianyungang, in east China's Jiangsu province, on May 22, 2016. WANG CHUN/IMAGINECHINA VIA AFP

It took a few days for the measure to be understood, overshadowed by the astonishing tariff escalation between the United States and China. On April 4, Beijing announced restrictions on exports of seven metals, some of which are little-known but essential in the household appliance, automotive, electronics, and defense sectors. In the standoff with Washington, China has unleashed a formidable commercial weapon: rare earths.

In this sector, its dominance has only strengthened: today it ensures 70% of the extraction of these strategic metals and 90% of their transformation. This gives it major negotiating leverage with Washington, even more so than smartphone factories. Hence the sights of American President Donald Trump on the reserves of Greenland or Ukraine, and his decree of April 24 to accelerate exploration and then extraction in the deep oceans, including in international waters .

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Le Monde

Le Monde

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