` China: All Rare Earth Materials Are Now 'State-Owned'
The new law will take effect on October 1, 2024. By Josh Norem July 2, 2024 https://www.extremetech.com/computing/china-all-rare-earth-materials-are-now-state-owned China is looking to take a bit more of a heavy-handed approach when it comes to using its natural resources. According to a new report, thanks to new legislation, the country is moving to label all rare earth materials used in the manufacturing of semiconductors as state-owned. The move by China will take effect on October 1, 2024, so it'll be a while before we fully understand the ramifications of this new action by China. News of China's latest move to secure its resources comes from a paywalled article from Nikkei, which was flagged by Tom's Hardware. It states the new law will prohibit certain people and organizations from accessing or damaging China's rare earth materials, which is likely a reaction to US sanctions against the country that prevent it from acquiring advanced technology. The article states it's being assessed that China may hope to use this new legislation as leverage in future negotiations over sanctions affecting the country. The two minerals that could quickly become embroiled in a dispute are gallium and germanium. These rare earth elements are used in a wide variety of technologies, and China is the largest provider of them to industries worldwide, so the move by China will have far-reaching implications. Tom's Hardware notes that China is responsible for 94% of the global supply of gallium, and germanium is also used across many industries. More importantly, the US relies on China for these rare earth metals, so it'll be interesting to see the ripple effects of this move by China once the legislation takes effect later this year. In the short term, it could lead to the US trying to source these materials from other countries, such as Vietnam or Brazil—which will likely be more expensive than getting them from China. US companies could also lobby the government to ease the sanctions a bit to allow some of the materials to be purchased from China to keep costs low. China seems to have quite a bargaining chip on its hands, though, as it reportedly currently produces up to 70% of the Earth's rare earth minerals. By one account, China has rare earth reserves totaling around 44 million metric tons, whereas the US's reserves are estimated at just 1.8 million tons, according to Investing News Network. -- _______________________________________________ Link mailing list [email protected] https://mailman.anu.edu.au/mailman/listinfo/link
