NEW YORK, November 11. /TASS/. China is considering the creation of a system that would restrict the supply of rare earth metals and a number of other materials to Pentagon-related companies, The Wall Street Journal (WSJ) reported, citing sources.
The "validated end-user" system would enable the Chinese authorities to honor their promise to streamline the export of rare earth metals to the United States while ensuring that the materials in question are not diverted to Pentagon suppliers, according to sources.
That said, such a system could complicate the supply of rare earth metals to American companies in the automotive and aerospace industries since both civilian and defense clients rely on those companies' products, the publication said. The details of the plan and the system itself are subject to change, the paper noted.
On October 9, China's Ministry of Commerce published two documents on tightening controls on the export of rare earth metals, and related technologies. On October 10, US President Donald Trump threatened Beijing with a 100% tariff increase and restrictions on software supplies. He also warned of possible restrictions on the supply of other goods to China, primarily aircraft spare parts.
On October 30, after a meeting with Chinese President Xi Jinping, Trump said that China had agreed to continue supplying rare earth metals to the US without hindrance.
In the early 1980s, China began making significant government investments in the extraction and processing of REE (rare earth elements) raw materials, and by the early 2000s, it accounted for over 80% of the world REE market. Currently Beijing is the largest supplier of REE to the world market, its share being estimated at up to 75%.