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Thursday, February 29, 2024

China-US Tensions

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Graham Perry
Graham Perry
Experienced Arbitration Lawyer | China & Chinese Business Affairs | Public Speaker/Lecturer.

China knows how to look after itself. This is the most experienced government in the world + the people in top positions have taken steps along the way to prepare them for high office.

In response to present China-US tensions, China is exploring how to limit the export of rare earth minerals that are crucial for the manufacture of American F-35 fighter jets. Rare earth is also core to the manufacture of smartphones, electric vehicles and wind turbines.

The Ministry of Industry + Information Technology is planning controls on the production + export of 17 rare earth minerals in China which controls about 80% of global supply. China also maintains a near-monopoly in the refining process that turns ores into materials ready for manufacture. Ores mined in the US must be sent to China as the US has no refining capacity of its own.

Biden knows his vulnerabilities. What he says and what he does are not necessarily the same. At the end of the day? Co-operation not Confrontation

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