China’s top economic planner refuses to rule out playing rare earths card against US
- The National Development and Reform Commission has again hinted that it may block America’s access to the strategic resources as the trade war drags on
- China produces 90 per cent of world’s rare earths and has warned it will not allow them to be used to ‘curb country’s development’
China’s top economic planning agency has once again declined to rule out the use of rare earths as weapon against the United States, as relations between the two sides continue to deteriorate.
Meng Wei, a spokeswoman for the National Development and Reform Commission, said on Monday that China, which makes up 90 per cent of the global supply of rare earths, was “promptly studying” measures to utilise the “special value of rare earths as a strategic resource”.
These included steps to improve industry competitiveness and intellectual property protections, as well as acting to curb illegal production and address environmental concerns, she said.
“We firmly oppose anyone who wants to use products made from China’s rare earth resources to curb China’s development,” Meng said, repeating an ambiguous warning the agency used late last month when asked whether the metals would become part of the months-long trade war.
Chinese rare earth stocks have soared as investors bet that Beijing will restrict exports of the raw materials – which are used in both consumer electronics and military equipment – as a retaliatory measure against the US.