The measure, seen as a strategic response to recent U.S. tariffs, not only affects shipments to the U.S., but also extends to all international markets.
The specific elements affected are Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium and Yttrium. These materials are components essential in a wide range of technological applications, from electric vehicle motors and television screens to cutting-edge military equipment. It is estimated, for example, that modern fighters like the F-35 rely on approximately 400 kilograms of these raw materials for their advanced systems.
The new regulation requires Chinese companies to obtain government licenses to be able to export these rare earths. According to reports, the application and approval process for these licenses could take a long time. up to 45 days, which is already causing significant delays and leaving shipments stranded in Chinese ports.
El Chinese Ministry of Commerce has justified the measure by arguing the need to "to safeguard national security and interests"However, the decision has raised alarm bells in Washington. US officials, including economic advisers, have expressed serious concern due to the potential impact and have indicated that the government will explore countermeasures.
Security experts warn about the possible repercussions for critical industries, especially the US defense sector, which already faces challenges in maintaining its technological advantage against Chinese production capabilities. Dependence on these critical resources could become a significant obstacle.
A Strategic Domain
The geopolitical landscape of rare earths is complex. Although these elements are not particularly rare geologically, their extraction and processing are complicated and often environmentally harmful, since they are found dispersed in the Earth's crust. Currently, it is estimated that Around 90% of global rare earth production is controlled by Chinese companies., giving Beijing a dominant position in this strategic market.
This is not the first time that China has used its control over critical resources as a tool of pressure. It has previously imposed similar restrictions on exports of Gallium and Germanium, crucial for the manufacture of semiconductors and military technology, which caused prices to rise on international markets.
International Reactions and Diversification
La European Union also feels the effects of this dependence. Brussels has expressed its intention to strengthen alliances with countries like Brazil to mitigate dependence on Chinese supplies. An EU Commissioner stressed the need for Europe "improve your resilience to external pressures".
En Switzerland, the impact is expected to be more indirect, as local companies often purchase limited quantities of rare earths directly, but do use components containing them. Although industry associations do not report immediate concerns, there is a call for a increased awareness of dependencies of supply chains with respect to China.
Future perspectives
These export restrictions raise serious questions about the future of US-China relations and the risk of deeper disruptions in supply chainsAs has happened in previous trade tensions, this measure is likely to accelerate efforts by the affected countries to look for alternatives and develop their own resources, diversifying its supply sources to reduce dependence on China.
While the immediate economic impact of Chinese controls is yet to be fully determined, long term implications For international trade and the stability of global supply chains, the implications appear to be significant. Strategic resource management is increasingly emerging as a key factor in global geopolitics.
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