There are no actions. China, which controls 90% of rare earth production, warned foreign manufacturers that their attempt to establish great actions could lead them to deal with higher supply restrictions, reports that reports than reports. Financial TimesTuesday, August 19.
In response to the commercial war launched by Donald Trump and the establishment of new US customs rights, Beijing has established restrictions on rare earth exports, these essential metals for several industrial sectors, including defense. According to the Financial Times, China deliberately limits rare earth exports to maintain control over this strategic resource. The constitution of an action would allow foreign companies to depend less on price fluctuations and restrictions.
Purpos Canceled Orders
A USCBC report states that rare earth orders have now reviewed to detect companies that try to build an action. Orders “superior to the usual averages” of foreign companies can expose them to “delays or cancellations of order,” says the report.
These restrictions encourage certain foreign companies to relocate their production in China. The American car manufacturer Regal Rexnord Corp has relocated part of its production in China, reports Financial Times. The automotive industry depends a lot on rare earths, especially those to use to assemble magnets.
In June, China exported 3,188 tons of magnets in rare earths, 38% less than last year. To deal with this fall, Americans and Europeans seek to reopen mines and refineries in their territory and even develop new technologies to extract them.
Source: BFM TV
