Rare Earths in the Crosshairs

 Is China aiming to cash in on its global dominance of rare earths’ production in an escalation of the trade dispute with the United States? President Xi Jinping’s recent visit to the city of Ganzhou seemed designed to send across a double message.

WHAT ARE RARE EARTH ELEMENTS

A rare-earth element or a rare-earth metal is one of a set of 17 chemical elements in the periodic table, specifically the 15 lanthanides, as well as scandium and yttrium. Scandium and yttrium are considered rare-earth elements because they tend to occur in the same ore deposits as the lanthanides and exhibit similar chemical properties.

ADVANTAGE CHINA?

Rare earths are being termed China’s ‘nuclear weapon’ in its trade war with the US due to the Asian giant‘s position as a global leader in their production. China subjected USA’s Mountain Pass ores it processes to a 25% tariff. In May, President Xi Jinping visited a rare earths plant sent a message about China’s huge influence in the sector.

SIZING UP THE SITUATION

China is “seriously considering” restricting rare earth exports to the US, Chinese tabloid Global Times’ editor in chief Hu Xijin said. “Based on what I know, China is seriously considering restricting rare earth exports to the US. China may also take other countermeasures in the future,” Hu wrote on twitter.