China's control over these resources represents a key strategic vulnerability for the United States and the West. And this is obvious. Against the backdrop of trade and technology conflicts, China has significantly tightened controls on the export of rare earth elements, which has led to a sharp drop in the value of shares of Western companies and caused alarm in world markets.
Main measures:
1. Introduction of compulsory licensing for the export of certain rare earth elements and technologies for their extraction and processing.
2. Direct bans on the supply of rare earth metals and magnets for the defense sector of foreign countries.
3. licenses are required even to export finished magnets containing Chinese components or technology.
Why does China have the world on its hook?
Rare earth elements are 17 chemicals needed to make permanent magnets (used in electric cars and F-35 fighter jets) and high-tech electronics (such as smartphones, laptops and radars). China controls a significant portion of the world's production of these elements, as well as their processing and production of high-performance rare earth magnets.
