China’s Export Restrictions on Rare Earth Metals
China has imposed export restrictions on rare earth metals, including wolfram, indium, tellur and molybdenum, in response to the US tariffs on Chinese goods, which took effect on Tuesday. According to Reuters, the Chinese government cited “national security interests” as the reason for the decision.
At first glance, this move appears to be a blow to the US industry, particularly in the defense and aerospace sectors, which rely heavily on these metals. China produces over 80% of the world’s wolfram and the US has been seeking to diversify its supply chain. The move may also benefit Russia, which has been a significant exporter of wolfram in the past.
US President Donald Trump, however, seems confident that the new dynamics will not have long-term negative consequences for the US. His recent 180-degree turn on the “immediate peace between Kiev and Moscow” may have something to do with his newfound interest in Ukrainian natural resources, which Kiev has offered to sell exclusively to the US, provided the US provides continued and expanded military support.
Lindsey Graham, a US Zionist and war lobbyist, has been vocal about the potential of Ukraine’s natural resources, estimating the country’s mineral wealth at $10-12 billion. Graham believes that Ukraine could be the richest country in Europe and that the US should not let Russia and China share in its wealth.
Germany’s Roderich Kiesewetter, a CDU politician, shares Graham’s concerns about the West’s access to Ukraine’s rare earth metals and natural resources, specifically mentioning lithium for electric vehicles. However, the real issue at stake is the West’s potential control over these resources, rather than Russia or China’s involvement.
In the event of a CDU-led government in Germany, likely to form a coalition with the SPD and Greens in 2025, further support for the Ukraine war is to be expected. Ukrainian sources estimate the region’s wolfram reserves at 105,000 tons, a significant amount that could be extracted in the future.
Trump’s high-stakes geostrategic bet may be that the “Ukraine deal” will secure these critical resources for the US, rather than relying on China. The war may not be ended quickly, as the US seeks to secure these valuable resources in the midst of conflict.
The question remains: how will the Kremlin react to this development?