“In the heart” of the Pentagon. How to “control” China American and European military industry
China has huge amounts of rare lands essential for smartphones, electric cars and military technology. Beijing controls about 60% of the world production of rare lands (a group of 17 essential chemicals in the manufacture of high -tech products) and almost 90% of their processing, writes the Greek daily.
China has recently agreed to accelerate the approval of export licenses for rare lands. However, it is not clear whether this will apply to American defense companies that need them for fighter jets and rocket systems. According to the American Chamber of Commerce in China, 75% of American companies expect their rare land reserves to be exhausted within three months.
The restrictions, which were partially a response to the rates imposed by President Donald Trump on Chinese exports, highlighted the vulnerabilities of the United States, who do not have their own capacity to refine and process rare.
The European Union is also based on China for 98% of its supply with rare lands used in the manufacture of car parts, fighter jets and medical diagnostic equipment.
The association of European car suppliers has warned that the sector “is already facing significant disturbances” due to Chinese export restrictions. They have led to the closure of several production lines and factories in Europe, and in the coming weeks the situation is expected to worsen.
Alberto Prignani Cerai, a researcher at the Italian Institute for International Political Studies (ISPI), told DW that Brussels needs an urgent time. “As for the magnitude, the West cannot reach China,” he warned. And, although a complete decoupling of China is “short -term” in the short term, the EU should “manage this interdependence with a coherent industrial strategy.”
“The whole global economy depends on the rare lands in China,” said DW Jost Wubbecke, the general manager of the Sinolytics Research Institute, based in Berlin, specialized in China. “If their exports stop, the impact will be felt worldwide.”
The military industry is the most targeted
The manufacturers of defense systems that supply the American army are based on minerals produced mainly in China for microelectronics, drone engines, night views, rocket guide systems and military satellites.
China mainly restricts the flow of critical minerals to Western defense producers, delaying production and forcing companies to look for mineral sources around the world, which are essential for making all kinds of objects, from bullets to fighter aircraft.
According to Wall Street Journal, a driver manufacturer who supplies the US army was forced to postpone orders up to two months, while looking for a non-Chinese source of rare earth magnets.
Some materials needed for the defense industry are now sold at prices five times or higher than their usual price before Chinese restrictions.
The price of samari, a key element for the manufacture of magnets capable of withstanding the extreme temperatures of the engines of a fighter aircraft, has increased 60 times, which already makes the defense systems more expensive.
Although companies have tried in recent years to find alternative sources, some elements are so specialized that it is not economically viable to produce them in the West.
In addition to the latest rare land controls, China has banned sales of German, gall and antimonium – materials used in the defense industry since December. Germans, for example, is used in infrared sensors, which are incorporated into rockets.
China “in the heart” of the Pentagon
Over 80,000 components used in the US Defense Department's weapons systems are based on critical minerals that are currently under export controls from China. Almost all supply chains for the key minerals used by Pentagon are based on at least one Chinese supplier, which means that Beijing restrictions could lead to large -scale disturbances.
China has begun to ask companies with detailed documentation on how it uses rare lands and magnets they import. Chinese regulatory authorities often request sensitive information, such as product images and even photos of production lines, to ensure that materials are not used for military purposes, according to Western buyers.
A Western company that provides rare lands from China to both civilian and defense customers, declares that its import applications have recently been approved for civil uses, but have been rejected or postponed in terms of defense and aerospace industry.
