Trade conflict
China’s export controls are rare earth
China used his economic strength as an instrument of power before US President Trump started his second term. The tightening of the trade conflict affects German industry.
The rare earths, which are important for industry, have been strongly more expensive after the tightening of the Chinese export hurdles. The prices for all metals summarized under the generic term rose by eight percent in May on a dollar basis, as the Association of the Bavarian Business (VBW) determined in their monthly raw material price index.
The Beijinger leadership imposed export controls for several metals in April. According to the VBW index, the prices of these rare earths have increased even more. Terbium was therefore almost 19 percent, gadolinium by almost 17 percent and Samarium by over 15 percent.
The metals are important for the production of electronic components in the electronics, auto and armaments industry. “The trade conflict between the USA and China is jointly responsible for this development, as a result, the Chinese government introduced export controls for many important rare earths and magnets,” said VBW general manager Bertram Brossardt. The Chinese KP had imposed the controls as a revenge for the punitive tariffs announced by US President Donald Trump.
According to various estimates, in the People’s Republic, 90 percent of the rare earths required worldwide are processed for industrial use. Highest stands had reached prices during the Corona pandemic at the beginning of 2022 when the global supply chains had stalled. The Federal Association of German Industry (BDI) recently warned of China in critical raw materials.
dpa
Source: Stern
