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China eyes rare earth export curbs for US defence sector – FT

17th February 2021

By: Bloomberg

  

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China is exploring whether it can hurt U.S. defense contractors by limiting supplies of rare-earth minerals that are critical to the industry, the Financial Times reported.

Industry executives said government officials had asked them how badly companies in the US and Europe would be affected if China restricted rare earth exports during a bilateral dispute, the FT reported, citing people it didn’t identify involved in the consultation.

China’s government last month issued draft guidelines for the sector, including a proposal that the nation restrict or suspend exploration and processing of rare earths to preserve natural resources and protect the environment.

Rare earths are used in everything from smartphones to fighter jets, with China controlling most of the world’s mining and having an even tighter hold of processing.

Edited by Bloomberg

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