China does not rule out use of rare earths in US trade war
According to Chinese newspapers, China is sending the signal that the country will use its earth metals in the trade war with the United States, or that the country does not rule out this. The earth metals, of which China is the world’s largest supplier, are used for electronics, among other things.
The Global Times quotes a spokesperson for the National Development and Reform Commission as saying, “If a country uses products made from China’s earth metals and uses them to stop China’s development, the Chinese people wouldn’t be happy about it.”
The paper writes that “industry insiders” say this is an implicit signal that China is willing to use its rare earths “as a weapon” in the “escalating trade war with the US and US restrictions on Huawei.”
Based on the same statements, the more serious newspaper South China Morning Post maintains that the Chinese government does not rule out the use of earth metals in any case. This paper also quotes the government spokesperson as de-escalating: “I want to emphasize that the production chains of China and the US are strongly connected and complementary. We benefit when we work together and suffer when we fight each other.” Beijing maintains the principles of open, coordinate and share in the development of the rare earths industry, but China gives priority to its own market.
Reuters points to an editorial from the Global Times titled “United States, don’t underestimate China’s ability to retaliate.” It states that the US is dependent on China’s rare earths. The newspaper also writes in that comment that the answer to the question of whether rare earths are a counter weapon is no mystery. Media in China generally does not write about positions that conflict with those of the government.
China was responsible for 80 percent of the US’s rare earth imports between 2014 and 2017, Reuters reports. The US would have spared this in the imposition of tariffs, while China would have increased the import tariffs for American earth metals. The US and other countries have seen China’s dependence on rare earths as a problem for years and are therefore looking for alternatives and trying to mine more earths themselves.
Update, 08.20: Title and introduction have been adapted based on the report of the South China Morning Post and a paragraph has also been added based on the report of this newspaper.