China uses 'new weapons' against USA: what gives it leverage

China has added seven rare earths to its export control list in response to US tariffs, giving it leverage in trade talks, the country produces about 90% of the world’s refined rare earths.

“From fighter jets to nuclear reactor cores and smartphones, rare earth minerals are vital to a wide range of products,” the publication said. — “Amid rising geopolitical and trade tensions, China’s dominance in mining and processing means these niche metals have become a tool of confrontation with adversaries.”

In response to punitive tariffs imposed by Washington, Beijing added seven rare earths to its export control list earlier this month. While these metals are common in the Earth’s crust, they are not often found in concentrated deposits. They can also require a multi-step process to separate the individual elements, with China controlling not only mining but also the vast majority of the world’s processing capacity, Bloomberg reports.

Meanwhile, the United States has almost no capacity to process the target metals, according to consulting firm Project Blue.

Terbium, a rare earth element, is found in light bulbs and provides bright colors on smartphone screens. It adds heat resistance to magnets used in aircraft, submarines and missiles.

According to the U.S. Department of Defense, it is “one of the most difficult elements to mine,” as it makes up less than 1 percent of the total rare earth content in most deposits.

China exports 85% of its terbium to Japan, while other destinations include South Korea and the United States, which account for about 5%, according to Bloomberg calculations.

Yttrium is used to treat liver cancer and in the production of lasers for dental and medical operations. It also increases the strength of alloys.

China sends more than half of its dysprosium to Japan, about a tenth to South Korea, and just 0.1% to the United States.

Gadolinium's ability to absorb neutrons also makes it an ingredient in the core of nuclear reactors, is also effective in improving the performance of alloys. Lutetium is used as a liquid chemical catalyst in oil refineries.

Samarium-cobalt alloys are on the U.S. list of critical metals for potential stockpiling.The rare earth element scandium can be extracted from mine tailings or as a byproduct of uranium or other metals.

Source: Bloomberg.

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