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While buying deposits in Brazil, China bans exports of essential minerals to the US in yet another chapter of the current trade tension

Written by Alisson Ficher
Published 05/12/2024 às 00:08

China has banned the export of essential minerals to the United States and acquired one of Brazil’s largest deposits. With valuable rare earths at stake, the transaction raises debates about mineral sovereignty, low prices and strategic impacts. As tensions between Beijing and Washington increase, Brazil faces the challenge of protecting its natural wealth and valuing its resources.

The international scenario is in turmoil. In a move that promises to further intensify global trade tensions, China has made a decision that directly impacts the United States, while expanding its presence in Brazil.

This strategy, which involves control of essential minerals, raises questions about sovereignty, economic dependence and power struggles.

After all, what is behind this new move by Beijing, and how could it affect Brazil and the world?

On Tuesday (3), China announced a ban on exports of essential minerals, such as gallium, germanium and antimony, to the United States.

These materials have critical military and technological applications, such as in the manufacture of semiconductors, fiber optic cables, ammunition and batteries.

The blockade, which had already been partially implemented in previous years, is a direct response to recent US sanctions against the Chinese technology sector.

The new weapon in the trade war

According to China's Ministry of Commerce, the minerals affected by the restriction have “dual-use” applications, meaning both military and civilian.

The order, which took effect immediately, also requires more rigorous scrutiny of the end use of graphite, a key material for electric vehicle batteries.

“In principle, the export of gallium, germanium, antimony and graphite to the United States will not be permitted,” the agency announced in an official statement.

The decision reflects the increasingly aggressive tone of the dispute between the world's two largest economies, which are vying for control of global supply chains.

These minerals play vital roles in strategic technologies. Gallium and germanium are used in semiconductors and infrared equipment, while antimony is crucial in the manufacture of ammunition and weapons.

Graphite is the main component of rechargeable batteries, pillars of the global transition to clean energy.

Western dependence and global impact

Currently, China dominates the production of most of these strategic minerals.

According to the consultancy Project Blue, the country is responsible for 59,2% of the world's production of refined germanium and 98,8% of refined gallium.

In the case of antimony, China produced 48% of the global volume extracted last year, a figure that reveals the dependence of other countries on the Asian giant.

The impact of these restrictions can already be felt in international markets. Data from information provider Argus shows that prices for antimony trioxide, for example, have risen 228% since the beginning of the year.

Such price increases could trigger a global rush for alternative sources, but the scarcity of exploitable deposits outside China puts the West in a vulnerable position.

Brazil in the crosshairs: the case of the Pitinga mine

While the US faces difficulties in accessing strategic minerals, China is strengthening its influence in Latin America, especially in Brazil.

A clear example of this strategy is the recent acquisition of the Pitinga mine, located in the state of Amazonas.

Sold for approx. $ 2 billion, the deposit contains minerals such as tin, niobium and rare earths, essential for cutting-edge technologies.

According to experts, the transaction value was considered low given the mine’s strategic potential.

Samuel Hanan, former vice-governor of Amazonas, highlighted that the main attraction of Pitinga is not just tin, but rare earths, such as yttrium and xenotime.

These minerals are essential for the production of electric car batteries, wind turbines and technological devices.

“Brazil has the second largest reserve of rare earths in the world, but unfortunately, it lacks technology and policies that value these resources.

That’s why we end up handing over our wealth to foreign companies,” Hanan said in a recent interview.

The debate on mineral sovereignty

The sale of the mine reignited the debate over Brazil's mineral sovereignty and the need for more robust public policies to protect national interests.

“Mining is not renewable. We are talking about finite and strategic assets. It is not enough to sell cheaply; we must ensure transparency and fair collections.” Hanan emphasized.

Furthermore, the Amazonas government has positioned itself in favor of foreign investments, as long as they respect environmental laws and generate local economic development.

However, experts warn of the risks of depending excessively on external partners without ensuring compensation that benefits the Brazilian population.

Consequences for the future

The growing dispute between global powers for control of essential minerals places Brazil in a strategic position on the world stage.

As China emerges as the largest producer and controller of these resources, the United States faces significant challenges in diversifying its supply chains.

On the other hand, Brazil appears to be on the sidelines of this dispute, with valuable resources being sold for what are considered low prices and without a clear policy to use these riches for its own benefit.

How can the country reverse this scenario and ensure a more promising future for its economy?

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Geraldo Costa
Geraldo Costa
05/12/2024 18:04

There was a lot of talk about the surrender of right-wing politicians, and now they are handing it over to their ideological partner. Hypocrites!

Jonas
Jonas
In reply to  Geraldo Costa
05/12/2024 19:33

Hey... but there was no state-owned company exploring these minerals. The company that was extracting them was a PRIVATE company, China came and bought them, it's the free market. Hypocrisy is being against a private negotiation that happens during a left-wing government and applauding the sale of STATE-OWNED oil pipelines and refineries at a **** price just because I'm sympathetic to the neo-fascist government. Give us a break, nané!
PS.; I think all natural resources should be nationalized.

Danio
Danio
In reply to  Jonas
06/12/2024 16:51

We need a presidential government and patriotic governors, Brazilian citizens, and not these current ones who are always praising the left, an archaic, bankrupt Marxist thought, and are thus handing over their wealth to a communist, mandatory foreign government.

Al6
Al6
In reply to  Danio
06/12/2024 18:10

Why did the communist government manage to elevate its country to about 30 years into the future? I just wanted to understand…

José Carlos
José Carlos
In reply to  Al6
07/12/2024 02:40

The answer is simple: because despite being a communist, he acts and plans like a capitalist.
It's the law of the sting: if you don't do what you're told, the firing squad is right there.

hannah w. becker
hannah w. becker
In reply to  Jonas
10/12/2024 07:27

Hello! Without a doubt, the material wealth of a country should be the people's heritage...this is Petrobras!!! But until when will shady deals reign?

Guilherme Coelho Vaz
Guilherme Coelho Vaz
In reply to  Geraldo Costa
07/12/2024 21:07

It's a lie, Zé Ruela.

Milton Souza
Milton Souza
05/12/2024 18:29

The **** reserves, Brazil's rich subsoil was already sold years ago, the country has no minerals, unless it buys them, since everything is in foreign hands, our politicians sell the country.

Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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