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China’s recent decision to restrict exports of rare earth minerals has disrupted global supply chains and imposed an estimated cost of $34 billion per decade on the U.S. economy. The move, which directly impacts the production of semiconductors, optical fibers and batteries, highlights the Asian giant’s strategic dominance over materials essential to modern technology.
China accounts for a staggering 94 percent of the world’s production of gallium and 83 percent of germanium (a rare mineral), two elements crucial to industries such as electronics, telecommunications and renewable energy. With Russia as the only significant competitor in the gallium market, China’s global dependence on other countries makes other countries highly vulnerable to such moves.
The decision is not only strategic, but symbolic. Gallium and germanium are essential for the manufacture of semiconductors, which form the basis of devices such as smartphones and advanced computing systems. Germanium is also used in the production of fiber optic cables and solar cells, while antimony, another material affected by the restriction, is essential for ammunition and electric vehicle batteries.
Billion-dollar impact for the US
According to the US Geological Survey, the restriction could reduce US GDP by $3,4 billion per year. Over a decade, this represents a cumulative loss of $34 billion, compounded by shortages of other strategic materials. This disruption to supply chains is forcing companies to seek alternatives, but the process requires significant investment and can take years.
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As mineral markets expert Nedal Nassar explained, developing new or substitute sources of supply is time-consuming and expensive. Until then, the U.S. and other affected countries will face significant challenges in maintaining their competitiveness in the global marketplace.
Challenges for global industries
China’s export restrictions are adding pressure to industries such as the automotive industry, which is already struggling to transition to electric vehicles. Limited access to graphite, another critical material, is also contributing to higher costs and more complex supply chains.
Tech and automakers will have to rethink production schedules and invest in innovation to reduce reliance on limited materials. Meanwhile, consumers could face higher prices and a possible slowdown in the adoption of new technologies.
The strategic role of the rare mineral
China’s decision highlights how control over the rare earth mineral can profoundly influence markets and geopolitics. For countries like the US, the challenge is not just economic but also strategic: diversifying sources of supply and investing in research to reduce dependence on a single nation.
With an estimated impact in the billions and far-reaching consequences, China's dominance over these essential materials it's a reminder how the global economic balance can change rapidly in the face of strategic decisions.
How wonderful to see this news! The American beasts and their dogs (NATO and UN) thought they could create so many restrictions against China and they would accept it lightly? I can only imagine those animals getting hardened because the Chinese dared not to bend the knee to them and pay them a blowjob.
My friend, I make your words mine, the Americans think they are the best, the Chinese are going to bring the USA to its knees, and also win the biqu€t€.
Exactly
Left-wing disease is dementia, a type of leprosy virus...
And you even more insane! Leprosy is a bacteria, you amoeba!
Right-wing ****, then…
It's either **** or ****! The **** looks at the super tariffs imposed on Chinese cars and basic technological products made by Biden and will be increased by Trump. Does that mean there can't be a counterpart? That's **** capitalism. What does that have to do with the left. It's so **** that it's **** that there's only one answer left: it's ****. It doesn't even read medicine labels! That's why we can't accept a government that has no idea about public management, geopolitics and economics!!!
Hahahahaha…….good!!!
The ignorance you display in your comments is frightening. The United States is the last shield of democracy in South America.
China is a risk to any free and democratic country.
And you still forget that if the United States is economically bad, the impact here is disastrous.
Studying a little would help reduce the production of nonsense.
The same democracy that Hiroshima and Nagasaki received, the one that killed Saddam Hussein and returned the country to the Taliban?
Wake up Alice, the cancer of the world is this country you are mentioning
If there is no war, Americans will not survive, because they live off trading weapons.
Exactly. These Brazilian people are not worth what the cat buries.
The US stopped being an example of democracy a long time ago 👍
Good answer
Where did you get the idea that the US is a democracy? You should read more, if you did, you would know that since the Reagan administration, it has become a **** of the rich, the State is getting smaller and smaller and the dependence on private initiative is gigantic. Since the politicians depend on businessmen to get elected, because they finance the politicians' campaigns and demand government positions and measures in exchange for their financing.
Dear Leonardo, I believe you should avoid showing your ignorance to the public; keep it to yourself, study works that report the truth and stop believing the garbage that the bought press publishes. If you want to get out of your state of ignorance, here are some works written by an American, former economic **** named John Perkins: first book: Deceived; second: Confessions of an Economic ****; third: Secret History of the American Empire; fourth: New Confessions of an Economic ****. If you want to know a little about Brazil, read: “From the Militia to the Bolsonaro Era” and “The Jair Business”; here is also a recommendation for a great book called “Why Democracies Die”. I hope I have helped you.
As an academic, I would only add to your wise comment, since the bibliographical references are excellent, to avoid the word “truth”. A term that is too complex in the philosophical field. However, Leonardo is unparalleled in his ignorance! Great answer, master!!!
Is a country that has around eight hundred military bases spread around the world an example of democracy? To this day, many people have not come to terms with the explosion and murder of Brazilian scientists at the Alcântara base. Ukraine took one billion from Brazil and did not launch its satellite due to American influence. The economic embargoes against Brazilians make it difficult for Brazil to do anything. The list is very long…
The Brazilian space program fell by itself, from its impoverished state, to the technological opposite of making solid-fuel rockets. No space program in the world has evolved without heavy investment and the adoption of cryogenic liquid fuel technology. It was not sabotage. Wake up!
China will be the salvation of the world. I hope one day to see a demon like the butcher of Israel, Benjamin Nathanael, pay for his crimes, rotting in a cell.
, without having godfathers like the US to sponsor their murders of thousands of Palestinian children.
And as a result, the Chinese will value you because you are very happy with the mineral wealth they have. I would like to meet you a few years from now to hear your opinion on the future. You don't mess with China.
**** communist. What's the point of keeping the mineral and not selling it to anyone?
Nothing is irreplaceable.
Do you think that if Brazil stops exporting soy they will die of hunger?
There are always alternatives. If the US closes the oil inlets they will stop. They will never face the US Navy.
The Trump era has already started to sink China's ship, congratulations