China’s Continuing Rare Earth Dominance – Analysis
In 2010, China had used its dominance over rare earth elements (REEs) to effectively implement its ban on exports to Japan, ostensibly following the collision of a Chinese fishing vessel with Japanese coast guard vessels. Almost a decade later, as China threatens to ban exports to the United States (US), a replay of the same could be in the offing. US President Donald Trump upped the ante when on August 01 he announced an additional 10 per cent tariff on the remaining US$ 300 billion worth of Chinese imports, starting September 01, 2019.1 Interestingly, rare earths were excluded from the list. The REEs are a set of 17 minerals2 used to make, among other things, permanent magnets which are used in defence equipment, including actuators, to control guidance systems for airborne smart missiles, as well as in aerospace applications for aircraft components and airstrip maintenance equipment. REEs are also used in electronic items like television sets and cell phones and renewable ...