China aims at rare earth export curbs to target US defence industry: Report

Photo: Reuters

China is aiming at curbing the exports of rare earth minerals that are crucial to the US defence contractors, a Reuters report said. The curb on the exports of rare earth minerals is likely to be on the contractors like Lockheed Martin Corp for the manufacture of sophisticated weaponry and F-35 fighter jets. 

"The government wants to know if the US may have trouble making F-35 fighter jets if China imposes an export ban," Reuters quoted a Chinese government adviser as saying.

According to a Bloomberg report, the government had issued draft guidelines for the sector in January, with proposals including firms abiding by export regulations and the possibility that the nation restricts or suspends exploration and processing of rare earths to preserve natural resources and protect the environment.

This is to be noted that former United States President Donald Trump had signed an executive order in 2020 that aimed at expanding domestic output of rare-earth minerals. 

Meanwhile, the Global Times has said that China's rare earth exports to the US are not being curbed and are continuing unaffected. However, reviews of such an option may have been done and measures could be taken against foreign companies that hurt the country's interests, when necessary.

"China does not restrict rare-earth exports to the US except on the basis of counter-terrorism and national security ground, or in extreme circumstances such as during wartime," a senior industry insider told the Global Times. 

The bedrock of electrical manufacturing, rare earths are 17 elements that serve as key components in devices like hi-tech smartphones, cameras, computers and flat-screen televisions. Notably, the Asian superpower leads the global supply chain of rare earths and the US heavily relies on China to access the metals.