China Expands Rare Earth Export Controls To Target Semiconductor, Defense Users (reuters.com) 38
Longtime Slashdot reader hackingbear writes: Following U.S. lawmakers' call on Tuesday for broader bans on the export of chipmaking equipment to China, China dramatically expanded its rare earths export controls on Thursday, adding five new elements, dozens of pieces of refining technology, and extra scrutiny for semiconductor users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping. The new rules expands controls Beijing announced in April that caused shortages around the world, before a series of deals with Europe and the U.S. eased the supply crunch.
China produces over 90% of the world's processed rare earths and rare earth magnets. The 17 rare earth elements are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Foreign companies producing some of the rare earths and related magnets on the list will now also need a Chinese export license if the final product contains or is made with Chinese equipment or material, even if the transaction includes no Chinese companies, mimicking rules the U.S. has implemented to restrict other countries' exports of semiconductor-related products to China.
Developing mining and processing capabilities requires a long-term effort, meaning the United States will be on the back foot for the foreseeable future. The Commerce Ministry also added to its "unreliable entity list" 14 foreign organizations, which are mostly based in the United States, restricting their ability to carry out commercial activities within the world's second-largest economy for carrying out military and technological cooperation with Taiwan, or "made malicious remarks about China, and assisted foreign governments in suppressing Chinese companies," it said in a separate statement, referring to TechInsights, a prominent Canadian tech research firm, and nine of its subsidiaries including Strategy Analytics which were among those blacklisted.
China produces over 90% of the world's processed rare earths and rare earth magnets. The 17 rare earth elements are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Foreign companies producing some of the rare earths and related magnets on the list will now also need a Chinese export license if the final product contains or is made with Chinese equipment or material, even if the transaction includes no Chinese companies, mimicking rules the U.S. has implemented to restrict other countries' exports of semiconductor-related products to China.
Developing mining and processing capabilities requires a long-term effort, meaning the United States will be on the back foot for the foreseeable future. The Commerce Ministry also added to its "unreliable entity list" 14 foreign organizations, which are mostly based in the United States, restricting their ability to carry out commercial activities within the world's second-largest economy for carrying out military and technological cooperation with Taiwan, or "made malicious remarks about China, and assisted foreign governments in suppressing Chinese companies," it said in a separate statement, referring to TechInsights, a prominent Canadian tech research firm, and nine of its subsidiaries including Strategy Analytics which were among those blacklisted.
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i don't think china really gives a crap about other 'leaders' chest-thumping for domestic consumption. they do care about trade being fair or just an instrument for interference, and respond in kind.
Re:de facto but not de jure (Score:4, Interesting)
they do care about trade being fair
Perhaps a nitpick, but neither China nor the US cares about free trade as much as they care about favorable trade. Both countries employ various tactics to restrict trade to their advantage. All countries use subsidies. We're seeing countries use strategic export controls and even embargoes. Also dumping, import restrictions, forced technology starting or transfer or theft, industrial espionage and more.
Free trade rhetoric is just marketing/propaganda. All countries are for free trade when it benefits them but cry foul when it's a disadvantage.
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indeed, but not all countries are on equal footing and there's where the difference comes in:
let's take the us. the us has enjoyed a long period of dominant position (for several reasons), and on trade agreements with less developed countries have used that as leverage for profit. part of the eu, specially the uk and north europe, much of the same but lately to lesser extent. this is mostly the case when what the partners have to offer is basically natural resources. if you only maximize your current profit
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As someone said in another forum, "China doesn't see the need to help build the missiles that the US wants to attack it with."
Our executives' greed for short term profits has made us totally dependent on China for the materials necessary for our economy to function.
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Dependency is normal. Dependency on a potential adversary is not normal. Dependency on Russian oil and gas has bit Europe in the ass. Sure, you can trade with a potential adversary during peace time, but you always have to have alternatives and not be like Germany in 2022.
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now, let me share a wild idea, this is just a random thought, a crazy what-if: what if trump was perfectly aware that this would backfire on the military complex, and is totally fine with it, because that's precisely one festering ground of his political enemies?
One thing that pretty much all politicians have in common in the USA is support of the MIC. Democrats will happily pass additional funding for the military, they have done it again and again [leftvoice.org]. He would be attacking his allies as much as his enemies.
The bright side (Score:4, Interesting)
The US government has been trying really hard to alienate the entire world, especially China. China's leaders aren't dumb, they know how to fight back, they know how to hit the US where it hurts, and they're not afraid to do it.
It's no coincidence that China has stopped buying soybeans and rice and pork from the US, a move that will hurt farmers most severely. Farmers are a group of voters who strongly backed Trump. Now, With this rare earth move, China is continuing to fight back in ways that will inflict damage on very specific parts of the US economy, hitting seats of economic power.
Eventually, Trump's most loyal supporters will start to fragment, to turn against each other, each concerned about conflicting interests. Witness Marjorie Taylor Green, the staunchest of Trump allies, now openly speaking against his government shutdown.
Let's just hope that the fragmentation and pain starts to knock some sense into politicians, before it *really* starts to hurt the American people.
Re:The bright side (Score:4, Informative)
Witness Marjorie Taylor Green, the staunchest of Trump allies, now openly speaking against his government shutdown.
She's actually speaking out in favor of Obamacare subsidies... which is truly mind-blowing.
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She really does seem to be trying to speed run a redemption arc - hopefully no one actually falls for it.
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Nah she just said some other spectacularly stupid and corrupt shit yesterday or so, it was so terrible I blocked it out so I don't remember what it was, but it should be easy to find because everyone is interested in study of our last remaining neanderthal.
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She really does seem to be trying to speed run a redemption arc - hopefully no one actually falls for it.
She is trying to separate herself from the Republican Party for now because she perceives an advantage, or perhaps she is worried and thinks it will help her maintain her cushy seat. After all she worked hard debasing herself for that seat. Marjorie chased around kids who survived a school shooting, badgering one as "little Hitler" and so on. She also blamed "Jewish space lasers" for wildfires in California. ALL of it to gain the clout to win office. She's a literal Qnut blaming school shootings in general
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It is also no coincidence that el Bunko's Treasury has just concluded a currency swap with Argentina worth about $20 Billion. That means that we get to hold their peso and they get to hold our dollar. If you have been following Argentina's Milei, then you realize he has about as much business acumen as el Bunko and hence Argentina has no chance to get out of their slump, which took years in the making. Want to guess how much them pesos will. be worth after el Bunko leaves office?
To thank the U.S., Argentina
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I read the first 2 paragraphs thinking El Bunko is President of some south american country i don't know about. Then got confused how US Treasury made $ Tn profit from said country. Then it dawned on me that you are trolling
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It is also no coincidence that el Bunko's Treasury has just concluded a currency swap with Argentina worth about $20 Billion. That means that we get to hold their peso and they get to hold our dollar. If you have been following Argentina's Milei,
Didn't Javier Milei sweep to power in Argentina promising to fix the Argentine economy with magical Libertarian powers by cutting all government departments. I distinctly remember videos of him tearing names of government departments off a white board shouting "Afuera".
What would such an anarcho-capitalist god need with a bailout?
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And he has been massively successful!
He has brought inflation down to tolerable levels, he has done a lot to improve the overall fiscal picture.
Trouble is voters like free stuff, they are tiring of austerity and the nation is still in debt up to its eyeballs from past mismanagement. Shocker a few years for doing the right things, does not immediate correct long term structural harm.
Good lesson here for the people keeping the government shutdown so they can shovel more money at the ACA. It does not work, the
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And he has been massively successful!
He has brought inflation down to tolerable levels, he has done a lot to improve the overall fiscal picture.
And you believe that? If you look at the inflation of South American countries you'll notice that Colombia, Brazil, Chile, Equador and Peru next to Argentina looked completely flat. When you zoom in you realise that they had the same curve but topped out around 12% where as Argentina went to over 220% and only dropped down to 110%. Brazil and Colombia followed similar curves and they had left wing governments (Lula and Petro respectively) which should tell you it was a global condition and Milei (as well a
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What's interesting is the U.S. doesn't make the majority of I.C.s for the U.S. products. China is now requiring "permits" for their companies that manufacture and ship out products to the U.S. that contain rare Earth elements.
It's going to get interesting in that our automotive industry is dependent upon the elements as well as just about everything electronic that we purchase. I predict some backtracking on the decision once reality sets in.
Gee (Score:2)
Well, what did you expect??? (Score:2)
This tit-for-tat will only escalate, and both sides will feel the pain.
Appropriately.
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"90%" (Score:2)
That reqiure a buildout of recycling plants (Score:1)
Though that requires U.S. Manufacturing investments that like the saying goes Rome wasn't built in a day thus it would take time if there i