The Chinese jockying for tariff leverage has begun.
After months of speculation of what China would do in tandem with Trump coming to power, further revelations have come to light over the last few days of what will happen.
We have seen RE elements being banned, and we have seen Lockheed Martin being banned.
Well, it is now getting very real.
China have ramped up the list of banned US based defence contractors to 29!
As of 4 days ago, the 2nd of January, these companies include-
link-
https://www.mofcom.gov.cn/zwgk/zcfb...html?utm_source=substack&utm_medium=email
Ministry of Commerce Announcement No. 1 of 2025 to add 28 U.S. entities to the export control list
In accordance with the relevant provisions of the Export Control Law of the People's Republic of China and the Regulations of the People's Republic of China on Export Control of Dual-Use Items , and in order to safeguard national security and interests and fulfill international obligations such as non-proliferation, it is decided to include General Dynamics Corporation and 28 other U.S. entities on the export control list (see attachment), and take the following measures:
1. The export of dual-use items to the above-mentioned 28 US entities is prohibited; any related export activities currently underway should be stopped immediately.
2. If export is really necessary under special circumstances, the export operator shall apply to the Ministry of Commerce.This announcement shall come into effect on the date of publication.Appendix:
Export Control List (January 2, 2025)
1. General Dynamics
2. Harris Technologies
3. Intelligent Epitaxy Technology [actually Taiwanese]
4. Clear Align LLC
5. Boeing Defense, Space & Security
6. Lockheed Martin Corporation
7. Raytheon Missiles & Defense
8. Lockheed Martin Missiles and Fire Control
9. Lockheed Martin Aeronautics
10. Raytheon/Lockheed Martin Javelin Joint Venture
11. Raytheon Missile Systems
12. General Dynamics Ordnance and Tactical Systems
13. General Dynamics Information Technology
14. General Dynamics Mission Systems
15. Inter-Coastal Electronics
16. System Studies & Simulation
17. Iron Mountain Solutions
18. Applied Technologies Group
19. Axient
20. Lockheed Martin Missile System Integration Lab
21. Lockheed Martin Advanced Technology Laboratories
22. Lockheed Martin Ventures
23. Anduril Industries
24. Maritime Tactical Systems
25. Pacific Rim Defense
26. AEVEX Aerospace
27. LKD Aerospace
28. Summit Technologies Inc.Within all of these companies’ supply chains there are products made from rare earths.
Within all of these companies’ supply chains there are products made from rare earths.
Now that may seem like a LONG and comprehensive list.
It seems that way because it is!
And what will China do when they will no longer supply the above companies? They will scale back production....see below...
Elimination category:
- Monazite single mineral development project (anyway prohibited for more than a decade already)
- Rare earth chloride electrolysis metal production process project
- Wet process for producing rare earth fluoride for electrolysis
- 2,000 tons rare earth oxides/year or less mixed rare earth mine development project,
- 5,000 tons rare earth oxides/year or less bastnaesite rare earth mine development project,
- 500 tons rare earth oxides/Ionic rare earth mine development projects under 1 year
- Rare earth separation projects with an annual output of less than 2,000 tons rare earth oxides
- 1500 tons/year or less, electrolytic cell current less than 5000A, current efficiency less than 85% of light rare earth metal smelting projects
- Heap leaching and pool leaching of ionic rare earth ores
It show clearly that China further concentrates rare earth production, eliminates anything that is deemed environmentally harmful or economically non-viable and that output growth at any price is not an objective.
So, what will the west do?
Unless Trump plays ball with China, repents and redacts his tariff policy, then this will all play out.
And the one thing Trump is NOT known for is bending the knee and kissing the ring of Xi.
It will get worse before it gets better....
But in the meantime, there are literally only a handful of companies that can step up to the plate as quickly and as cheaply as us.
The recyclers may be sitting in the box seat here, and with Ionic tech poised and ready to roll out our tech, we may be seeing a plant in North America sooner than you think.
Which could see us starting projects in Belfast, Brazil and the USA ....THIS YEAR.
One thing is for certain though, Trump's victory and hard line attitude, in combination with China's state ownership and determination to continue to control all things RE, will force the West into action.
It is now a matter of self capability and sovereign security, more than it ever has been......
They need to act, and they need to act now!
Because time has clearly run out.
Good luck everyone...
(20min delay)