Rare earths: The latest weapon in the US-China trade war

China has been accused of using its rare earth leverage for political and economic reasons in the past (Shutterstock)
Updated 29 May 2019
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Rare earths: The latest weapon in the US-China trade war

  • China could shut down nearly every automobile, computer, smartphone and aircraft assembly line outside of China if they chose to embargo these materials
  • Rare earths “are abundant across the globe,” said OANDA’s Halley

BEIJING: They are used in everything from lightbulbs to guided missiles, but with China controlling 95 percent of the world’s supply of rare earth metals, they are also a potentially powerful weapon in Beijing’s trade war with Washington.
Here are some key questions and answers on the prized elements.
The bedrock of electrical manufacturing, rare earths are 17 elements that serve as key components in devices ranging from hi-tech smartphones and cameras to flat-screen televisions and computers.
China dominates the global supply chain — and Washington relies heavily on the Asian superpower to access the metals. So much so that the commodities have not been subject to the tariff increases imposed by Donald Trump’s administration on Chinese goods.
But Chinese state media is now suggesting that rare earth exports to the US could be cut in retaliation for American measures, sparking fear among manufacturers.
Simply put, rare earths give Beijing tremendous political and economic leverage in its spat with the United States.
The US this month threatened to cut supplies of US technology to Chinese telecom giant Huawei, citing security concerns and intensifying a trade spat that has seen both countries slap tit-for-tat tariffs on each other.
While Beijing has so far only issued cryptic warnings to suggest that rare earths could be its next weapon, “as a retaliatory trade measure, it’s a no-brainer on the surface,” according to OANDA senior market analyst Jeffrey Halley.
If Beijing chooses to make good on these threats, the impact on US manufacturers could be disastrous.
“China could shut down nearly every automobile, computer, smartphone and aircraft assembly line outside of China if they chose to embargo these materials,” James Kennedy, president of ThREE Consulting, wrote last week in National Defense, a US industry publication.
China has been accused of using its rare earth leverage for political and economic reasons in the past.
In 2014, the World Trade Organization ruled the country had violated global trade rules by restricting exports of the metals, claiming environmental damage from mining and the need to conserve supplies.
The US, European Union and Japan had appealed to the WTO, accusing Beijing of curbing exports to give domestic tech firms an edge over foreign rivals.
The WTO panel ruled that the quotas were “designed to achieve industrial policy goals rather than conservation.”
Four years earlier, Japanese industry sources said China temporarily cut off exports to Japan in 2010 when a territorial row flared between the Asian rivals, charges that Beijing denied.
Analysts say Beijing may not pull the trigger just yet, possibly because any restriction could spark a chase for alternative sources of rare earths.
Despite its dominance over supply, China is not the only country with sizeable reserves of the metals.
The United States Geological Survey estimated last year there were 120 million tons of deposits worldwide including 44 million in China and 22 million in both Brazil and Vietnam.
For much of the last century, the US dominated rare earths production.
But mining the metals creates huge amounts of toxic waste and in 2003 California’s Mountain Pass mine — then the sole US miner of rare earths — ceased production, following an environmental disaster a few years earlier.
China filled the void — helped in no small part by lax regulations and lower costs — and grew quickly to become the leading producer of the metals.
Rare earths “are abundant across the globe,” said OANDA’s Halley, but added that many countries are turned off by the heavy costs — financial and environmental — incurred in the production process.
“Much like everyone would like a new airport nearby, just not next door to them... the world has reaped what it has sown by handing the keys to China in this respect,” he said.


A British-Palestinian doctor was denied entry to France for a Senate meeting about the war in Gaza

Updated 10 sec ago
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A British-Palestinian doctor was denied entry to France for a Senate meeting about the war in Gaza

Dr. Ghassan Abu Sitta was placed in a holding zone in the Charles de Gaulle airport and will be expelled, according to French Sen. Raymonde Poncet Monge
Abu Sitta posted on social networks that he was denied entry in France because of a one-year ban by Germany on his entry to Europe

PARIS: A well-known British-Palestinian surgeon who volunteered in Gaza hospitals said he was denied entry to France on Saturday to speak at a French Senate meeting about the Israel-Hamas war. Authorities wouldn’t give a reason for the decision.
Dr. Ghassan Abu Sitta was placed in a holding zone in the Charles de Gaulle airport and will be expelled, according to French Sen. Raymonde Poncet Monge, who had invited him to speak at the Senate.
‘’It’s a disgrace,’’ she posted on X.
Abu Sitta posted on social networks that he was denied entry in France because of a one-year ban by Germany on his entry to Europe. Germany denied him entry last month, and France and Germany are part of Europe’s border-free Schengen zone. He posted Saturday that he was being sent back to London.
The French Foreign Ministry, Interior Ministry, local police and the Paris airport authority would not comment on what happened or give an explanation.
Abu Sitta had been invited by France’s left-wing Ecologists group in the Senate to speak at a colloquium Saturday about the situation in Gaza, according to the Senate press service. The gathering included testimony from medics, journalists and international legal experts with Gaza-related experience.
Last month Abu Sitta was denied entry to Germany to take part in a pro-Palestinian conference. He said he was stopped at passport control, held for several hours and then told he had to return to the UK He said airport police told him he was refused entry due to “the safety of the people at the conference and public order.”
Abu Sitta, who recently volunteered with Doctors Without Borders in Gaza, has worked during multiple conflicts in the Palestinian territories, beginning in the late 1980s during the first Palestinian uprising. He has also worked in other conflict zones, including in Iraq, Syria and Yemen.
France has seen tensions related to the Mideast conflict almost daily since the deadly Oct. 7 Hamas incursion into Israel. In recent days and weeks police have cleared out students at French campuses holding demonstrations and sit-ins similar to those in the United States.

Afghanistan’s only female diplomat resigns in India after gold smuggling allegations

Updated 04 May 2024
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Afghanistan’s only female diplomat resigns in India after gold smuggling allegations

  • Zakia Wardak, the Afghan consul-general for Mumbai, announced her resignation on her official account on the social media platform X
  • According to Indian media reports, she has not been arrested because of her diplomatic immunity

ISLAMABAD: Afghanistan’s diplomat in India, who was appointed before the Taliban seized power in 2021 and said she was the only woman in the country’s diplomatic service, has resigned after reports emerged of her being detained for allegedly smuggling gold.
Zakia Wardak, the Afghan consul-general for Mumbai, announced her resignation on her official account on the social media platform X on Saturday after Indian media reported last week that she was briefly detained at the city’s airport on allegations of smuggling 25 bricks of gold, each weighing 1 kilogram (2.2 pounds), from Dubai.
According to Indian media reports, she has not been arrested because of her diplomatic immunity.
In a statement, Wardak made no mention of her reported detention or gold smuggling allegations but said, “I am deeply sorry that as the only woman present in Afghanistan’s diplomatic apparatus, instead of receiving constructive support to maintain this position, I faced waves of organized attacks aimed at destroying me.”
“Over the past year, I have encountered numerous personal attacks and defamation not only directed toward myself but also toward her close family and extended relatives,” she added.
Wardak said the attacks have “severely impacted my ability to effectively operate in my role and have demonstrated the challenges faced by women in Afghan society.”
The Taliban Foreign Ministry did not immediately return calls for comment on Wardak’s resignation. It wasn’t immediately possible to confirm whether she was the country’s only female diplomat.
She was appointed consul-general of Afghanistan in Mumbai during the former government and was the first Afghan female diplomat to collaborate with the Taliban.
The Taliban — who took over Afghanistan in 2021 during the final weeks of US and NATO withdrawal from the country — have barred women from most areas of public life and stopped girls from going to school beyond the sixth grade as part of harsh measures they imposed despite initial promises of a more moderate rule.
They are also restricting women’s access to work, travel and health care if they are unmarried or don’t have a male guardian, and arresting those who don’t comply with the Taliban’s interpretation of hijab, or Islamic headscarf.


Russia puts Ukraine's Zelensky on wanted list, TASS reports

Updated 04 May 2024
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Russia puts Ukraine's Zelensky on wanted list, TASS reports

  • Russia has issued arrest warrants for a number of Ukrainian and other European politicians

MOSCOW: Russia has opened a criminal case against Ukrainian President Volodymyr Zelensky and put him on a wanted list, the state news agency TASS reported on Saturday, citing the Interior Ministry's database.
The entry it cited gave no further details.
Russia has issued arrest warrants for a number of Ukrainian and other European politicians since the start of the conflict with Ukraine in February 2022.
Russian police in February put Estonian Prime Minister Kaja Kallas, Lithuania's culture minister and members of the previous Latvian parliament on a wanted list for destroying Soviet-era monuments.
Russia also issued an arrest warrant for the International Criminal Court (ICC) prosecutor who last year prepared a warrant for President Vladimir Putin on war crimes charges.


A Chinese driver is praised for helping reduce casualties in a highway collapse that killed 48

Updated 04 May 2024
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A Chinese driver is praised for helping reduce casualties in a highway collapse that killed 48

  • Reacting swiftly, Wang, a former soldier, positioned his truck to block the highway, effectively stopping dozens of vehicles from advancing into danger
  • His wife got out of the truck to alert other drivers about the situation

BEIJING: A Chinese truck driver was praised in local media Saturday for parking his vehicle across a highway and preventing more cars from tumbling down a slope after a section of the road in the country’s mountainous south collapsed and killed at least 48 people.
Wang Xiangnan was driving Wednesday along the highway in Guangdong province, a vital economic hub in southern China. At around 2 a.m., Wang saw several vehicles moving in the opposite direction of the four-lane highway and a fellow driver soon informed him about the collapse, local media reported.
Reacting swiftly, Wang, a former soldier, positioned his truck to block the highway, effectively stopping dozens of vehicles from advancing into danger, Jiupai News quoted Wang as saying. Meanwhile, his wife got out of the truck to alert other drivers about the situation, it said.
“I didn’t think too much. I just wanted to stop the vehicles,” Wang told the Chinese news outlet.
Wang’s courageous actions not only garnered praise from Chinese social media users but also recognition from the China Worker Development Foundation.
The foundation announced Friday that in partnership with a car company it had awarded Wang 10,000 yuan ($1,414). A charity project linked to tech giant Alibaba Group Holding also gave an equal amount to Wang, newspaper Dahe Daily reported. Wang told the newspaper he would donate the money to the families of the collapse victims.
Local media also reported that another man had knelt down to prevent cars from proceeding on the highway.
The accident came after a month of heavy rains in Guangdong. Some of the 23 vehicles that plunged into the deep ravine burst in flames, sending up thick clouds of smoke.
About 30 people were hospitalized. On Saturday, one was discharged from the hospital, state broadcaster CCTV reported. The others were improving, but one remains in serious condition.
On Saturday, the Meizhou city government in Guangdong said in a statement that authorities would conduct citywide checks on expressways, railways and roads in mountainous areas. A team led by the provincial governor is investigating the cause of the collapse, Southcn.com reported.
The Chinese government had sent a vice premier to oversee recovery efforts and urged better safety measures following calls by President Xi Jinping and the Communist Party’s No. 2 official, Premier Li Qiang, to swiftly handle the tragedy.
The dispatch of Zhang Guoqing, who is also a member of one of the ruling Communist Party’s leading bodies, illustrates the concern over a possible public backlash over the disaster, the latest in a series of deadly infrastructure failures.


Russia says it shot down four US-made long range missiles over Crimea

Updated 04 May 2024
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Russia says it shot down four US-made long range missiles over Crimea

  • The ATACMS missiles, with a range up to 300km were used for the first time in the early hours of April 17

MOSCOW: The Russian defense ministry said on Saturday its air defense forces shot down four US-produced long-range missiles over the Crimea peninsular, weapons known as Army Tactical Missile Systems (ATACMS) that Washington has shipped to Ukraine in recent weeks.
The ministry said later that Russian aircraft and air defense systems had downed a total of 15 ATACMS in the past week.
On Tuesday, Russian officials said Ukraine had attacked Crimea with ATACMS in an attempt to pierce Russian air defenses of the annexed peninsula but that six had been shot down.
A US official said in Washington last month that the United States secretly shipped long-range missiles to Ukraine in recent weeks.
The ATACMS missiles, with a range up to 300km were used for the first time in the early hours of April 17, launched against a Russian airfield in Crimea that was about 165 km (103 miles) from the Ukrainian front lines, the official said.
The Pentagon initially opposed the long-range missile deployment, concerned that taking the missiles from the American stockpile would hurt US military readiness.
There were also concerns that Ukraine would use them to attack targets deep inside Russia, a step which could lead to an escalation of the war toward a direct confrontation between Russia and the United States.
Separately on Saturday, the Russian defense ministry said that in the last week its forces had destroyed a military train carrying equipment and arms produced in the West and supplied to Ukraine by NATO.
The scale of the damage, exact date and location were not disclosed.
Reuters is not immediately able to corroborate battlefield accounts from either side.
On Thursday, British Foreign Secretary David Cameron promised 3 billion pounds ($3.7 billion) of annual military aid for Ukraine for “as long as it takes,” adding that London had no objection to its weapons being used inside Russia, drawing a strong rebuke from Moscow.