According to The Wall Street Journal, China is developing a new export control system that will allow the restoration of rare earth metal supplies to the U.S., but will prevent their use in the American defense sector.
The new export control rules require suppliers to identify and verify the end users of the products in order to manage the sale of critical materials to American representatives. This gives China the ability to maintain control over the supply of rare earth metals and reinforce its economic and political influence.
The Impact of Rare Earth Metals on the Global Economy and Defense Industry
Rare earth metals are widely used in various industries, such as technology, electronics, automotive, and military equipment. China controls a significant share of global extraction and processing of these metals, giving it substantial leverage over both the world economy and defense industries.
By creating a new export control system, drawing on the experience of the U.S., China aims to preserve its power over the supply of rare earth metals while simultaneously strengthening its geopolitical position on the international stage.
The newly developed export control system in China is crucial for the balance of power in the global economy and for the country's strategic security in the context of international relations.