Last week, China’s Ministry of Commerce published a document that went by the name of “announcement No. 62 of 2025”.
But this wasn’t just any bureaucratic missive. It has rocked the fragile tariffs truce with the US.
The announcement detailed sweeping new curbs on its rare earth exports, in a move that tightens Beijing’s grip on the global supply of the critical minerals - and reminded Donald Trump just how much leverage China holds in the trade war.
China has a near-monopoly in the processing of rare earths - crucial for the production of everything from smartphones to fighter jets.
PSA: rare earth’s aren’t rare. It’s the separation from each other and the bulk of earth that makes it cumbersome. It’s basically processing capacity that China has today.
Invest in local processing plants.
China spent the last 2 decades investing in infrastructure, energy, heavy industry and manufacturing while we were… doing what exactly? Selling smartphone apps to each other, pumping crypto, gig economy and letting private equity gut our services?
How many years does it take to get a processing plant up and running? Longer than Donald has to live, I’ll bet.
Probably, considering the average lifespan of a dementia patient. However, processing capacity could be built quickly* if it were a priority. It’s just that the private sector isn’t capable of creating or funding that priority on its own, so a competent government is required.
*years rather than decades
I guess the good news is that he only has 2 years or less left?
Yes, resource availability isn’t the issue, and “just invest more” has some massive hurdles:
All these mean any processing outside of China is going to be incredibly expensive and competitively unprofitable. It’s not impossible to do, and removing dependence from China is probably worth it, but it’s going to take a lot of capital and time to achieve and sustain.
Sure, but like, they sound rare. It’s right in the name. That’s why dumbass Trumpo behaves like China is hoarding rare jewels from him and cries for Mommy to do something.
Can’t we just do tariffs that cripple our already dwindling industrial capacity and give tax cuts to rich people who don’t need them?
The reality is that China is about the only country willing to process the rare earth minerals because of how incredibly toxic it is to the local populace. Many countries could choose to invest in processing plants but are unwilling to subject their citizens to the cancers they invariably cause.
Maybe that’s too generous. The wealthy don’t want them around, and it’s bad business to get your labor force unable to work.
I don’t know if environmental protection is high on trump’s list, along with the welfare of ‘illegal migrants’.
Do you want environmental degradation and pollution with processing rare earths? Because that’s the main reason why many countries avoid doing it because it will be met with opposition from their electorates.
That’s only because we want cheap rare earths. If we wanted rare earth’s without the environmental fallout, it would be expensive even if done in China. We’re simply offloading our environmental waste to others.