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submitted 3 months ago by MicroWave@lemmy.world to c/world@lemmy.world

Last week, China's Ministry of Commerce published a document that went by the name of "announcement No. 62 of 2025".

But this wasn't just any bureaucratic missive. It has rocked the fragile tariffs truce with the US.

The announcement detailed sweeping new curbs on its rare earth exports, in a move that tightens Beijing's grip on the global supply of the critical minerals - and reminded Donald Trump just how much leverage China holds in the trade war.

China has a near-monopoly in the processing of rare earths - crucial for the production of everything from smartphones to fighter jets.

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[-] icelimit@lemmy.ml 1 points 3 months ago* (last edited 3 months ago)

PSA: rare earth's aren't rare. It's the separation from each other and the bulk of earth that makes it cumbersome. It's basically processing capacity that China has today.

Invest in local processing plants.

[-] suigenerix@lemmy.world 1 points 3 months ago

Yes, resource availability isn't the issue, and "just invest more" has some massive hurdles:

  • China has over 25,000 patents in the field of rare earths
  • China doesn't have the strict environmental-protection regulations like much of the rest of the world. It keeps the price very low, but at great cost to its environment from toxic run-off and the like
  • Complex, expensive solvent extraction processes require extensive experience that China is well ahead of the rest of the world on
  • China has a highly integrated supply chain from mining to finished product manufacturing

All these mean any processing outside of China is going to be incredibly expensive and competitively unprofitable. It's not impossible to do, and removing dependence from China is probably worth it, but it's going to take a lot of capital and time to achieve and sustain.

[-] Gates9@sh.itjust.works 1 points 3 months ago

Donald Trump is a goddamn fucking moron

[-] realitista@lemmus.org 0 points 3 months ago

Wasn't very hard to find. Trump hasn't shut up about it since he got elected.

[-] limonfiesta@lemmy.world 0 points 3 months ago* (last edited 3 months ago)

Not hard to find, but hard to properly leverage.

This is the result of a multi-year effort by China to insulate themselves from very specific retaliatory measures i.e. leverage the USA had over them, but not any longer.

[-] Nollij@sopuli.xyz 1 points 3 months ago

Wild that China is the only one that learned from Trump in 2016, and prepare for what was coming.

Of course, most of that is what China's been doing anyway for a couple decades, so that may be more coincidental.

[-] sirico@feddit.uk 0 points 3 months ago

That's just China's goto for any international being, as they're literally the only ones capable/willing of processing them.

[-] Talaraine@fedia.io 0 points 3 months ago

If only we knew how to... I dunno... invest in something other than Lithium. Something ubiquitous and cheap... like sodium.

Nahhhh

[-] aldhissla@piefed.world 0 points 3 months ago

Your point is valid but less relevant. Lithium is an alkali metal found in different sources than rare earths, with Australia and South America producing the most.

Rare earths are expensive to refine which is why western mines and refineries have been outcompeted by China. If we were to subsidise local production we'd have an abundance, e.g. from Scandinavia.

Expensive to process safely and in an ecologically-conscious manner. Aka expensive in money but it's important to note the environmental damage these processing plants can do when unregulated.

[-] RandAlThor@lemmy.ca -1 points 3 months ago

It's not new, and it's known to China and any half-intelligent observer forever. Rare earths are the only lever China has on US. US on the other hand has a chokehold on China's throat, its economic future and present: AI chips, and the largest single export market for China's economic engine while its economy falters - its exports. Trump has the leverage, and he's bargaining hard.

[-] Xulai@mander.xyz 1 points 3 months ago

You’re either a propaganda bot or someone facing propaganda toxicity.

[-] RandAlThor@lemmy.ca -1 points 3 months ago* (last edited 3 months ago)

You are sadly not well informed on the global trade and economics. Read my comment history. I don't like China or Trump. Both are authoritarian regimes and fascists. I suppose that makes you in favor of China and a Chinese bot on a Western discussion board?

this post was submitted on 17 Oct 2025
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