The dispute between China and the United States over rare earths promises to cause catastrophic geopolitical damage and damage to the global economy and technology.

So far, the United States has taken the lead in imposing tariffs on China in the trade war, but the Asians may “turn the tide” and expand the scope of this dispute to a level that could exacerbate the global situation. The future will create a technological war. A Crisis with Huawei Reinforcing this risk, Chinese newspapers warned: the country is ready to use rare earths in retaliation for the United States. This could affect the entire electronics production chain in the world.

In recent weeks, speculation that the value of these components could rise due to a trade war has benefited shares of manufacturers in the sector. Although China has yet to announce any tariffs or restrictions on sales of rare earths to the US, Chinese media have already set the tone. The Chinese newspaper warned Americans not to underestimate the “Chinese ability to counterattack” and highlighted an “uncomfortable” US dependence on rare earths from China.

“Undoubtedly, the US side wants to use rare earth products exported from China to control and suppress China’s development. The Chinese people will never accept this!” said the publication.

As the sole producer until 1998, the United States pioneered the development of technologies to refine and use these rare earths.

It should be remembered that until 1998, the United States was the pioneer in developing technologies for refining and using these rare earths. However, China soon became the world leader, responsible for 95% of global production. Supply of these elements in 2005. Although China’s role has declined since then, it dominates not only the extraction but also the refining of these rare earths.

Rare earths, despite their name, are not that rare in nature. For example, elements such as iron are more abundant than copper and three times more abundant than lead. However, the major challenge lies in the process of purifying these components, which is very expensive and highly toxic.

Strategic importance of rare earths

Rare earths are fundamental to the modern economy and society and are used in a wide range of advanced technologies. They play a key role in semiconductor manufacturing, which is at the heart of the technology war between the US and China.

For example, lasers rely heavily on rare earth elements. These lasers are used in various applications such as medical treatments, dentistry and semiconductor manufacturing. Also, rare earth permanent magnets are essential for plasma material processing, which is important for the deposition of thin films on semiconductor wafers.

Rare earths are also used in medical applications such as coatings and frictions, high dielectric constant transistors, LED lighting, and diagnostic imaging tests (PET).

Take a look at the elements that are part of the rare earths and their uses:

China and North America dispute over rare earths

China dominates not only production but also reserves of the world’s rare earths, positioning it for strategic advantage. Other countries, such as the United States, have smaller reserves and depend on China to meet their needs.

When China threatens to retaliate against technology sanctions imposed by the United States, this creates concern in Washington because the United States can only maintain its technological and industrial output at current rates if it has access to these rare earths. If China decides to freeze exports altogether, it will deal a severe blow to Americans and their allies such as Japan, the Netherlands and South Korea, which produce key technologies blocked by China.

Challenges and future implications

Other countries may try to develop their own rare earth elements, but they face significant challenges. The refining process is very expensive and toxic, and China can do it very cheaply, about 500% cheaper than its competitors.

This economic advantage of China means that any attempt to replace Chinese imports would have a devastating impact on a range of products and services, from medical equipment to electronics and advanced technologies. This could lead to a breakdown in the healthcare system in developed countries and significantly delay scientific and technological progress globally.

Therefore, the dispute over rare earths is an important geopolitical issue with profound implications for the economy, technology and national security of the countries concerned. The ability to control and access these strategic elements will be the determining factor of geopolitical dominance in the future.

Control of rare earths will be a determining factor in the future global power game.

Rare earths are a fundamental resource for modern economy and technology, playing an important role in a wide range of advanced applications. However, China dominates the production and reserves of these components, placing it in a position of strategic advantage.

The dispute between China and the United States over this key resource has deep geopolitical implications, and if China decides to cut off exports completely, it could do catastrophic damage to the economy and global technological progress. This is an issue that deserves attention and constant monitoring, as the control of rare earths will be a decisive factor in the global power game of the future.

Brazil is a reference in the extraction of iron ore, niobium, gold, lithium and niobium. According to the Brazilian Institute of Mining (IBRAM) and the Brazilian Geological Survey (CPRM), the country has the potential to become one of the five largest producers of rare earth minerals worldwide, with rare earth deposits estimated at 21 million tons. In the coming years. This capability can generate billions of dollars worth of revenue. Check out the complete article.

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