China’s rare earths association has warned that the trade conflict
with the US will harm American businesses and consumers, as it confirmed its
readiness to weaponize the prized elements.
Rare earth elements are critical for the high-tech industry in the
manufacture of everything from mobile phones to modern fighter jets.
The Association of China Rare Earth Industry (ACREI), comprising
almost 300 miners, processors and manufacturers, held a special meeting earlier
this week, just several days after US president Donald Trump threatened to hit
Beijing with a new batch of tariffs.
In a statement
issued on Wednesday, the association called Washington’s tariffs policy
“trade bullying” aimed at suppressing China’s development. “We express
our firm opposition" to it, it said, adding that Chinese rare earth
companies should actively expand both foreign and domestic markets.
While the ACREI
acknowledged that are no winners in a trade war, it warned that American
citizens and businesses will fall victim to the conflict between the world’s
two biggest economies.
“The
cost of tariffs imposed by the United States should be borne by the US market
and consumers,” the statement read.
The rare earths
association’s comments add to earlier hints by Beijing that it could impose
restrictions on the exports of the materials. The fears were triggered by
Chinese President Xi Jinping’s visit to a rare earths facility in Jiangxi in
May, after which local media reported that the Chinese government is ready for
the export ban.
Such a move
could be painful for the US, which mostly relies on China for supply of the
materials which are necessary for production of high-tech devices and for
military use. In an apparent bid to secure the supply of the vital elements,
the Pentagon asked US miners last month to report on their production
capabilities and come up with plans to develop the industry.
China accounts
for more than 80 percent of the global of rare earths supply and the exports
are already falling. In June, it exported 3,966 tons of the materials, which is
26.8 percent less that at the same period last year.
Source: RT