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Beijing imposes high tariffs and increases restrictions on American products, aiming to strengthen its position in the rare earths market
In the current scenario of geopolitika between China e EUA, Beijing has just made a tactical move by focusing on a critical point: the rare Lands.
These strategic materials are essential for the technological and industrial sectors, and their importance only increases amid tensions between the two economic powers.
High taxes and trade restrictions
Starting tomorrow, April 10, China will apply a fee of 84% on all imported products from EUA.
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This measure is a direct response to the tariffs imposed by Washington, especially during the administration of Donald Trump, which will come into force on the day April 9.
However, China's response goes beyond just taxes: Beijing has also suspended import licenses for six American companies and tightened controls on the export of certain rare earths.
This scenario highlights an escalation in trade tensions, with each side seeking to apply pressure on the other.
The tariff issue is not just an economic issue, but reflects a larger struggle for technological and market influence.
The imposition of high tariffs can be seen as a way of retaliating against the protectionist policies of EUA, which aim to protect local industries and reduce dependence on imported products.
A history of strategic measures
This is not the first use of restrictions by the administration. Xi Jinping as a form of pressure on the EUA. In December 2023, China had already limited the export of rare earth processing technologies to protect its strategic interests.
At the beginning of December 2024, exports of critical minerals to the EUA, including essential elements for the semiconductor industry, such as gallium, germanium and antimony, as well as materials used in military applications.
The use of rare earths as a tool of economic and political pressure is not new.
Em 2010, China had already restricted the export of rare earths, leading Japan to seek alternative sources of supply.
This strategy led to greater global awareness of the dependence on rare earths and encouraged other countries to invest in their own extraction and refining capabilities.
The rare earth monopoly
As rare Lands consist of a set of 17 essential elements for the manufacture of products such as smartphones, batteries, wind turbines, electric vehicles and electronic chips. Without these materials, saving modern would face serious difficulties.
A China dominates about 90% of the world's production of rare earths, which gives it considerable bargaining power, especially in relation to countries that depend on its exports.
This monopoly is the result of a combination of factors, including investment in extraction technology, government policies that favor local industry, and mining practices that, although often criticized for being environmentally harmful, allow for large-scale production.
China has also been investing in new technologies to recycle rare earths from electronic products, which could further increase its ability to control the market.
Risks of Chinese strategy
Although this strategy strengthens the position of China in the trade war, it is not without risks.
Em 2010, similar restrictions have led many countries to seek alternative suppliers, which could be repeated and reduce dependence on the West in the long term.
However, in the short term, EUA and its allies still face significant challenges, as the production chain remains heavily dependent on Chinese refining.
In addition to the search for alternatives, pressure from China could encourage Western powers to accelerate the development of their own rare earth extraction and refining capabilities.
The European Union, for example, has already identified the need to diversify its supply sources and has been working to facilitate rare earth mining in its own territories.
A dispute beyond trade
The current escalation between China e EUA demonstrates that the conflict goes beyond trade: it is a global strategic dispute.
Every decision taken by these powers aims to weaken the other's advance in the technological race.
In this geopolitical chess game, the rare Lands emerge as an Achilles heel for the EUA, a vulnerable point that Beijing is more than willing to explore.
Tensions are also reflected in other areas, such as 5G technology, where Chinese companies such as Huawei have been targeted by restrictions in EUA.
This dispute shows that the competition between China e EUA is multifaceted, involving not only commercial issues but also national security and technological innovation.
In the current context, the role of rare Lands will only become more crucial as the demand for clean, sustainable technologies increases.
Electric vehicle batteries and wind turbines, for example, rely heavily on rare materials, which makes the issue even more pertinent.
We are possibly on the verge of a new Cold War, this time fueled by invisible elements, but indispensable for the saving modern
the way EUA e China manage these dynamics in the coming decades could shape not only their economies but also the world order as a whole.
SOURCE: XATAKA
