China propaganda :
“Afraid of being "stuck in the neck"?
The United States demands "ban China's rare earth"!
2022-01-17 14:46
On January 14, US Republican anti-China Senator Tom Cotton and Democratic Senator Mark Kelly proposed a bipartisan bill to ban US Pentagon contractors from buying Chinese rare earths.
According to the US Senate website on the 14th, the bill also includes the creation of the United States' own rare earth reserves, disclosure of the rare earth sources of contractors, and investigation of China's unfair trade practices. Ending America's reliance on China for rare earth mining and processing is "critical," said Tom Cotton. British Reuters said on the 15th that the United States currently has only one rare earth mine and no rare earth processing capacity. The U.S. rare earth industry generally supports the bill, but remains concerned about whether it can truly get rid of dependence.
The full name of the bill aimed at cracking down on China's rare earth industry is the "Restoration of Rare Earth Onshore Essential Energy and Security Assets Act" (REEShore). The most important of these terms is to require U.S. Pentagon contractors to stop importing Chinese rare earths by 2026. To this end, the bill also requires the U.S. Department of Defense and the Department of the Interior to establish a strategic reserve of rare earth minerals and products by 2025, which must meet a year's supply of U.S. military, defense, technology and other key sectors.
Reuters said that is essentially using the billions of dollars of fighter jets, rockets and other weapons the Pentagon buys each year as leverage to force contractors such as Lockheed Martin to stop relying on China and instead support the recovery of the U.S. rare earth industry. . The bill also requires Pentagon contractors to promptly track and disclose the origin of rare earth materials used in the weapons they submit. At the same time, the U.S. Department of Commerce and the U.S. Trade Representative should submit an investigation report to Congress to unearth China’s unfair trade practices in the rare earth market and impose tariffs if necessary…..
The congressman who proposed the proposal "is eager to serve the country", but the reality is not so good.
According to Reuters, the United States currently has only one rare earth mine and does not have the ability to process rare earths. The Pentagon is building what it calls a "strategic reserve of rare earths," although some of that stockpile is bought from China. "This is a conflict that we hope will be eased in time," the US Senate staff said.
The American Aerospace Industries Association (AIA), which includes numerous key Pentagon contractors, declined to comment on the bill. Most members of the U.S. rare earths industry applaud the bill, but they also have concerns.
Since the bill does not directly support rare earth miners and processors in the United States, it only requires Pentagon contractors to stop importing Chinese rare earths within four years. As a result, they worry that even in 2026, these contractors may still seek exemptions from continuing to buy Chinese rare earths.”
https://repe.com.cn/?news_122/1529.html
(20min delay)
