Trump signed the order to neutralize China’s “trump card”

President Donald Trump’s Ordinance has declared a state of emergency in the rare earth mining industry. Trump ordered the Interior Ministry to use the Defense Production Act to promote the development of rare earth mines.

Previously, the Trump administration used the Defense Manufacturing Act to promote the production of medical supplies during the Covid-19 outbreak.

Follow ReutersThe Trump administration’s Sept. 30 decree could lead to new rules on tariffs, quotas or restrictions on rare earth imports.

This is seen as a step by the Trump administration to break America’s dependence on China for a mineral that is important to the high-tech industry.

Rare earths are a group of 17 chemical elements that are used not only in civilian products such as smartphones, batteries, or electric vehicles, but also in important military technologies such as aircraft and rocket engines. , satellite and laser. The United States is almost entirely dependent on imports of rare earth metals and compounds.

Trade tensions between the United States and China have raised concerns that Beijing may use rare earths as a powerful weapon to counter Washington. From 2004 to 2017, China accounted for 80% of rare earth imports in the US Meanwhile, there are few other suppliers that can compete with China, which owns 37% of the world’s rare earth reserves.

The US Department of Defense recently pledged to budget for two rare earth separation plants in the US The Pentagon’s direct involvement in this issue presents the challenge of finding an alternative source of supplies from China. Rare earths are seen as Beijing’s “trump card” relative to major economies.

US lawmakers earlier this month also proposed a bipartisan bill aimed at reducing America’s dependence on China on rare earths. The European Union is also stepping up its efforts to reduce this dependency, while the European Commission proposes a rare earth alliance to be formed later this year.

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