As China Prepares To Choke Off America's Rare Metal Supply, Here is the National Security Analysis of China's Rare Earth Element Policy

 

China's new reporting requirement for rare earth element exports is a significant development with potential national security implications for the United States and other countries. China is the world's largest producer and processor of rare earth elements, which are essential for a wide range of high-tech industries, including aerospace, defense, electronics, and renewable energy.

The new reporting requirement could give China greater control over the global rare earth supply chain and allow it to use rare earths as a weapon in trade disputes or other geopolitical confrontations. For example, China could restrict or even cut off exports of rare earths to countries that it perceives as adversaries. This could have a devastating impact on the economies and national security of those countries.

The United States is particularly vulnerable to Chinese rare earth restrictions, given its high dependence on imported rare earths. According to the US Geological Survey, the United States imported 100% of its rare earth compounds in 2022.

The US government has recognized the risks of its dependence on China for rare earths and has taken steps to reduce that dependence. For example, the US government has invested in domestic rare earth mining and processing projects. However, these projects are still in their early stages of development, and it will take several years before the United States can produce and process enough rare earths to meet its own needs.

In the meantime, the United States and other countries are vulnerable to Chinese rare earth restrictions. This vulnerability is a significant national security concern.

Specific National Security Implications

Reduced access to critical materials: Chinese rare earth restrictions could make it more difficult and expensive for US companies to obtain the critical materials they need to produce high-tech products. This could reduce US economic competitiveness and make it more difficult for the US military to maintain its technological edge.

Increased dependence on other countries: If US companies are forced to turn to other countries for rare earths, the United States could become more dependent on those countries. This could make the United States more vulnerable to economic and geopolitical pressures from those countries.

Reduced supply chain resilience: Chinese rare earth restrictions could disrupt global supply chains and make it more difficult for US companies to obtain the materials they need to produce goods and services. This could lead to shortages and higher prices for consumers and businesses.

Recommendations

The US government should take the following steps to reduce its vulnerability to Chinese rare earth restrictions:

Accelerate the development of domestic rare earth mining and processing projects. The US government should provide financial and technical assistance to companies that are developing domestic rare earth projects. This will help to reduce the United States' reliance on imported rare earths and make it more difficult for China to use rare earths as a weapon.

Diversify its sources of rare earth imports. The US government should encourage US companies to import rare earths from other countries, such as Australia, Brazil, and Canada. This will reduce the United States' dependence on China for rare earths.

Develop new technologies that reduce the need for rare earths. The US government should invest in research and development to develop new technologies that reduce the need for rare earths. This will make the United States less vulnerable to Chinese rare earth restrictions.

The US government should also work with its allies to reduce their dependence on Chinese rare earths and to develop a more resilient global rare earth supply chain.

Unlikely Buddha 2023