What strategic measures can US authorities take to counter China’s near-monopoly on Rare Earth Elements (REEs) and prevent a decisive advantage for China in the sector, as highlighted in the recent report?
Rare Earth Elements (REEs) (Photo: Atlantic Council Video)
Urgent Collaboration Needed: Breaking China’s Rare Earth Element Monopoly through Strategic Alliances with Central Asia
According to a new report, US authorities seeking to break China’s near-monopoly on manufacturing rare earth elements required for many cutting-edge technologies should work with Central Asian nations to generate significant concentrations of REEs in the region.
It is crucial for renewable energy, a plethora of new defense systems, and other modern technologies; yet, the US International Tax and Investment Center claims that if we do nothing, China would gain a “decisive advantage” in the field.
“As the uses for these minerals has expanded, so too has global competition for them in a time of sharply increasing geostrategic and geo-economic tension,” according to the research.
“Advanced economies with secure, reliable access to REEs enjoy economic advantages in manufacturing, and corresponding economic disadvantages accrue for those without this access.”
China, which produces most of the world’s rare earths within its borders, has yet to seek further supply from Central Asia, which has abundant reserves of minerals ranging from iron and nonferrous metals to uranium.
However, according to the research, “the massive size of the Chinese economy and the Chinese Communist Party’s conscious efforts to dominate the REE sector globally means such increases are a matter of time.”
READ ALSO: Lawmakers Grill Air Force Undersecretary Nominee Melissa G. Dalton Over Chinese Spy Balloon And Border Wall
Importance of International Engagement
Former U.S. diplomat John Herbst highlights the vital role of enhanced engagement by the West in supporting the development of Central Asia’s REE assets for mutual economic benefits.
The U.S. State Department’s Mineral Strategic Partnership Initiative is identified as a platform to promote foreign investment and provide technical assistance for REE mining in Central Asia.
Experts stress the necessity for transparency and adherence to international norms to attract Western investment in the region’s rare earth ventures.
READ ALSO: US Mayors Impressed By Chinese Green Energy Initiatives During Wuhan Visit
