US Ambassador Accuses China of Weaponizing Rare-Earth Dominance
US Ambassador David Perdue accused China of weaponizing its rare-earth element dominance by criminalizing global efforts to diversify mineral supply chains.
U.S. Ambassador David Perdue accused China of weaponizing its dominance of rare-earth elements to hinder global efforts to diversify supply chains. Perdue stated that Beijing has escalated its tactics beyond standard export controls, treating diversification efforts as criminal offenses that could result in asset seizures, arrests, and exit bans.
These accusations follow a series of regulatory actions by the Chinese government. On July 1, China implemented a system to reward the reporting of strategic mineral violations. This was followed on September 15 by regulations that allow authorities to block citizens from leaving the country if they violate export controls.
Earlier in the year, China's Ministry of Commerce placed two U.S. firms, MP Materials and USA Rare Earth, on an export-control list on June 22, which prohibits the supply of dual-use items to these companies. The Chinese government defended these measures as a necessary response to the United States listing Chinese firms as Chinese military companies.
