China counts its rare earth blessings as ban speculation persists
- State planners survey seven regions rich in the resources including Inner Mongolia and Jiangxi province
- Will Beijing weaponise its supply dominance in trade war with the US?
China is marshalling information on its rare earth resources with the launch of a detailed survey of areas rich in deposits, while speculation persists that Beijing may curb exports of the materials as part of the trade war with Washington.
The survey of rare earth resources in seven regions began on Monday, according to a report in the China Securities Journal, a newspaper controlled by Xinhua.
Local authorities in the surveyed regions – which include Inner Mongolia and Jiangxi province – must provide specific data and cases on major issues in protecting, developing and applying the resources, according to the official newspaper.
Beijing has also asked these provinces to share thoughts and suggestions on how to improve the supply security of strategic mining resources like rare earths.
What leverage does China’s rare earths dominance hold in trade war?
The survey is being conducted by China’s state planner, the National Development and Reform Commission, the industry ministry and the natural resources ministry.
The ministries could not immediately be reached for comment outside normal business hours.
The campaign, mainly directed by the NDRC, might lead to a reduction of rare earth output and push up prices, as Beijing was expected to crack down on illegal mining and trade of the critical elements, the newspaper said, citing an unidentified industry insider.
Chinese rare earth prices are set to climb further beyond the multi-year highs reached after a flurry of state media reports that Beijing could weaponise its supply dominance of the prized minerals in its trade war with the United States.
China accounted for 80 per cent of rare earths – a group of 17 chemical elements used in high-technology consumer electronics and military equipment – imported by the US from 2014 to 2017.
China is home to at least 85 per cent of the world’s capacity to process rare earth ores into material manufacturers can use, according to research firm Adamas Intelligence.
