China has concluded a plan to damage the US economy by limiting exports to the US. China is likely to halt the export of critical minerals and heavy rare earth to the US as soon as the government decides to proceed with the plan. Over 80% of US’s earth’ supplies are imported from China, and it is believed to be a crucial war tactic.
With the said proceeding, shares of the concerned companies showed huge progress. Shares of China Northern Rare Earth Group High Tech Co. raised by 5.9%, whereas shares of China Minmetals Rare Earth Co. gained 4.4%. The rare earth involved in the matter is dysprosium, used in magnets commonplace in almost all cars and many consumer goods, yttrium, used in lighting and flat screens and ytterbium which is used in treatment for cancer.
Spokesman of Commerce Ministry briefed that the nation is ready to cater the genuine needs of the market but no compromise on the national interest would be done, and use of rare earth supplies to crush country’s development would not be acceptable.
The rare earth minerals are quite uncommon and have diverse uses, and alternatives of these are also not available. Now, the future of trade war is to be based on the Chinese decision. While it is not clear, as to how will the restrictions be imposed as yet, the US government is preparing to object the Chinese stance at the World Trade Organization.