China's recent cessation of exporting select heavy rare earth metals and magnets, effective April 3, poses significant challenges for U.S. industries including tech, defense, and automotive sectors. With 90% of the global supply processed in China, American manufacturers now face potential shortages of materials essential for developing products like cell phones and electric vehicles. Drew Horn, a former U.S. official on strategic minerals, emphasized that this move reflects China's leverage over the U.S. economy, a situation reminiscent of past trade tensions.
China has essentially created an all-powerful monopoly with rare earths, impacting critical sectors like technology and defense, as seen in their recent export halt.
The Chinese have been threatening to cut off exports of rare earths for years, leveraging their control to influence trade relations with the U.S.
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