In the middle of growing tensions between the United States and Chinathe government of Xi Jinping He showed his cards again with a strategic play: It harden the licensing system for the export of rare earths, key supplies for technological, military and clean energy industries. This decision, which directly affects manufacturers around the world, marks a new chapter in the commercial war and leaves Beijing’s power to condition the rhythm of the global economy.
China controls around 70% of world extraction from rare earthsbut its domain is even greater in refining and processing stages. Rare earth magnets are essential components for electric vehicles, drones, guided missiles and advanced chips, and the ability of the Asian country to regulate its flow abroad is seen by analysts as a geopolitical tool of surgical precision.
A model inspired by the US, but with Chinese seal
The export control policy that China has been consolidating for more than a decade is inspired by US sanctions regimes, but with its own imprint. While Washington limits the sale of sensitive technology to its strategic rivals, Beijing uses critical raw materials as a way to gain influence.
In April, the Chinese Ministry of Commerce expanded the list of rare earths subject to export licenseswhich left European and Japanese manufacturers without key supplies, forcing even at the close of some production lines. And although the Trump administration announced conversations to make these measures more flexible, Beijing did not give signs of wanting to go back.
“China is not simply restricting exports. He is maping exactly how and where his rare earths are used, and with that he wins a crucial advantage over his competitors,” said an executive of an American firm who preferred not to be identified.
The global impact and implications for Argentina
The new Chinese strategy comes at a time when the Technological dispute with the United States It intensifies, and the effects already feel in multiple sectors. Since 2020, Beijing has added restrictions on the export of Germanio, Gallium, Graphite and other essential minerals, which affects the stability of global production chains.
For Argentinawhich seeks to attract investments in mining and develop its clean technology industry, this situation represents a call for attention. He Argentine lithiumfor example, it is another strategic mineral in the energy transition, and the country could be involved in the global bid for critical supplies. In addition, local companies suppliers or technological supplies could face difficulties if imported component costs are triggered by supply restrictions.
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Rare Earth, Pressure Tool
It is not the first time that China uses this resource as a diplomatic tool. Already in 2010 interrupted exports to Japan in the framework of a territorial dispute. Since then, its power in this field has only grows.
Former President Deng Xiaoping warned him in the 90s: “The Middle East has oil, China has rare earths.” That phrase today charges a notable strategic validity.
The commercial meeting scheduled for Monday between high -level officials of both powers will seek to deactivate part of the conflict, but the new licensing system – which gives China a unprecedented vision of the use of these minerals on a global scale– It is already underway.
For many observers, Beijing does not seek to cut the supply, but manage your power With greater intelligence. A scalpel instead of a hammer. But the message is clear: if Washington insists on curbing the technological advance of China, Beijing will respond with what you have – and much – and control over the inputs that move the world.
Source: Ambito
