China’s rare health exports fell in may amidst of Beijing’s threat to the US of stopping the supply of those minerals to make consumer electronics. A data was released on Monday which stated China exported 3,639.5 metric tons of exports in the month of May down from 4,329 exports from the month of April.
Tensions between China and the US have been rising for the past three months since the US added tariffs on China exports, and the situations escalated as soon as Washington put a blacklisted on Chinese Company Huawei, which led to furthermore disputes between both the countries.
These tensions between the greatest economies of the world led to the US adding a tariff of worth $200 billion on China, which China responded to by adding a tariff of $60billion on US exports. In the recent happenings between the US and China, China threatened the US that they will stop the supply of rare earth minerals to the US if the tariff is not banished or completely removed.
This situation has led to a change in the further happenings of the trade war, rare earth minerals are used in majorly used in car motors, engine oils, diesel cleaning, and also in major defence weapons of the US, and hence, of the trade of rare earth minerals gets abolished by China to the US, this, in turn, will hamper the national security of the entire country.
China produces 70% of earth’s rare minerals, which has a count of 120,000 metric tons according to the US Geological Survey. Many argue that the US is reliant on China for the rare earth minerals more than what they expect of, and hence, this will affect the country’s defence and national security.
However, others argue that the US is not that reliant on China for the rare earth minerals export and hence, this strategy cannot be used as leverage against the US in the upcoming situations of the Trade War.