US Military Companies May not Able to Withstand Rare Earth Exports Curbs

According to British Financial Times, China is exploring the possibility of restricting rare earth exports and assessing how much impact this move will have on US military companies. The article stated that this type of material is essential for the US to manufacture advanced weapons and equipment such as F-35 fighter jets.

Russia's Viewpoint quoted Russian experts' analysis, saying that if China stops supplying rare earths to foreign countries, the US military companies will not be able to withstand such a long-term blow, but rare earths are also used in the production of high-tech products such as chips.

The Ministry of Industry and Information Technology of China publicly solicited opinions on the "Regulations on Rare Earth Management" in January, proposing that the state implement total quota management on rare earth mining, smelting and separation. According to Financial Times, China controls about 80% of the world's rare earth supply. Industry executives said that government officials have asked them how much impact China would have on US and European companies, including defense contractors, if China restricts rare earth exports during bilateral disputes.

According to an analysis by a person from a Chinese consulting agency. The government wants to know if the US may have trouble making F-35 fighter jets if China imposes an export ban," said a Chinese government adviser who asked not to be identified. Industry executives added that Beijing wanted to better understand how quickly the US could secure alternative sources of rare earths and increase its production capacity.

Fighter jets such as the F-35, a Lockheed Martin aircraft, rely heavily on rare earths for critical components such as electrical power systems and magnets. A Congressional Research Service report said that each F-35 required 417kg of rare-earth materials.

China's rare-earth exports to the US are not being restricted and are continuing unaffected, but reviews of such an option may have been done and measures could be taken against foreign companies that hurt China's interests, when necessary, experts and industry sources said. According to the Financial Times, the deterioration of Sino-US relations and the technological war between the two countries prompted China to take this action. The Trump administration tried to make it more difficult for Chinese companies to import sensitive American technologies, such as high-end semiconductors.

If China stops rare earth exports, the US military companies will not be able to withstand such a curb for a long time. The Russian Viewpoint reported that Alexey Maslov, director of the Far Eastern Institute of the Russian Academy of Sciences, said that rare earth metals from China are used to produce a large number of US military equipment, such as F-35 fighter jets. In addition, rare earth metals are also used in the production of high-tech products such as chips, and China imports a large number of electronic products made in the United States every year.

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