(HorizonPost.com) – Last week, the Chinese government announced that it would begin limiting the export of two rare earth minerals vital in the manufacture of computer chips and solar panels starting next month, NPR reported.
As of August 1, China will require those seeking to purchase gallium and germanium to apply for “special permission from the state” to export the minerals as a way to protect its national security interests.
The move, which is widely viewed as retaliation against the United States for restrictions on the sale of technology to China, is raising concern that the CCP may eventually limit the export of rare earth materials, Reuters reported.
Currently, China accounts for 70 percent of the world’s mineral mining and is home to at least 85 percent of the world’s processing capacity to turn minerals into material that can be used in manufacturing.
According to Reuters, nearly three-quarters of the rare earth minerals imported by the United States come from China.
Based on data from the Critical Raw Materials Alliance, China is responsible for producing 60 percent of the world’s supply of germanium and 80 percent of the world’s gallium. China also dominates the supply of other rare earth minerals needed in high-tech production, including the minerals needed in electric vehicle batteries like lithium, cobalt, and graphite.
The Biden administration has vowed to hasten the country’s “transition” from fossil fuel to renewable energy. However, the US lacks a domestic source of the minerals needed for such a transition.
In May, Beijing banned products made by the US-based chip manufacturer Micron Technology from use in China’s key infrastructure projects, claiming that the company’s products were a cybersecurity risk.
Beijing’s announcement came just days before Treasury Secretary Janet Yellen traveled to China to meet with senior officials.
Copyright 2023, HorizonPost.com
