China Gears Up to Weaponize Rare Earths in Trade War

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China Gears Up to Weaponize Rare Earths in Trade War

중국은 무역전쟁에서 희토류를 무기화할 계획이다

(gears up to : ~할 계획이다 / rare earths : 희토류)

By Jason Rogers

2019년 5월 29일 오전 9:20 GMT+9 Updated on 2019년 5월 29일 오후 12:33 GMT+9

★Chinese media use pointed phrasing to make rare earths threat

중국 언론은 희토류를 위협으로 만들기 위해 날카로운 어투를 사용한다

★President Xi visited rare earths facility earlier this month

시진핑 주석은 이 달 초에 희토류 시설을 방문했다.

Beijing is gearing up to use its dominance of rare earths as a counter in its trade battle with Washington, according to a salvo of media reports in China that included hints from the state planning agency. Stocks of producers surged.

- State planning agency로 부터 나온 힌트를 포함한 다수의 중국 언론의 보고에 따르면, 베이징은 워싱턴과의 무역 싸움에서 보복 조치로 베이징의 희토류 지배권을 사용할 예정이다. 희토류 생산 회사의 주식은 급등했다.

The U.S. shouldn’t underestimate China’s ability to fight the trade war, the People’s Daily, a flagship newspaper of the ruling Communist Party, said in an editorial Wednesday that used some historically significant language on the weight of China’s intent.

미국은 무역 전쟁에서 싸우는 중국의 능력을 간과하면 안 된다고 역사적으로 의미있는 중국의 의도를 실은 발언을 하는데 사용되는 공산당 대표 소식지인 인민일보가 수요 사설에서 전했다. 

The newspaper’s commentary included a rare Chinese phrase that means “don’t say I didn’t warn you.” The specific wording was used by the paper in 1962 before China went to war with India, and “those familiar with Chinese diplomatic language know the weight of this phrase,” the Global Times, a newspaper affiliated with the Communist Party, said in an article last April. It was also used before conflict broke out between China and Vietnam in 1979.

신문의 주석은 "나는 너를 겁주지 않았다고 말하지 마라"라는 의미의 드문 중국식 표현을 실었다. 이 특정한 어구는 중국이 인도와 전쟁을 하기 전에 1962년에 신문에서 사용되었다. 그리고 "중국의 외교 언어에 친숙한 사람은 이 어구의 무게를 안다"고 공산당과 제휴한 신문인 글로벌 타임스가 지난 4월 기사에서 언급했다. 이는 1979년 중국과 베트남 사이에 갈등이 일어나기 전에도 사용되었다.

On rare earths specifically, the People’s Daily said it isn’t hard to answer the question whether China will use the elements as retaliation in the trade war.

희토류에 대해서는, 인민일보는 중국이 무역전쟁에 보복으로서 희토류를 사용할 지 말지에 대한 물음에 대답하는 것은 어렵지 않다고 전했다. 

Big Share

About 80% of U.S. rare earths supplies come from China

미국에 공급되는 희토류 약 80%가 중국으로부터 수입된다. 

Source: U.S. Geological Survey

China is “seriously” considering restricting rare earth exports to the U.S. and may also implement other countermeasures, the editor-in-chief of the Global Times, said in a tweet. An official at the National Development & Reform Commission told CCTV that people in the country won’t be happy to see products made with exported rare earths being used to suppress China’s development. 

중국은 "심각하게" 미국으로의 희토류 수출 제한을 고려하고 있고 또 다른 보복수단을 사용할 수도 있다고 글로벌 타임즈의 수석 에디터가 트위터로 말했다. 중화인민공화국 국가발전개혁위원회(NDRC)의 한 위원은 CCTV에서 중국사람들은 중국의 발전을 억압하는데 사용된 수출된 희토류로 만들어진 제품, 즉 미국 제품을 반기진 않을 것이라고 말했다.  

Editorials in the Global Times and Shanghai Securities News took similar tacks in their Wednesday editions.

What our analysts are saying: The U.S. will continue to rely on importing rare-earth minerals from China, the materials used in key components for a wide variety of products including electronics, hybrid vehicles and energy-storage systems. Importing from China is cheaper than producing domestically in the U.S. 우리 애널리스트의 의견 :  미국은 중국산 희토류 광물 수입에 계속해서 의존할 것이다. 희토류는 전자기기, 하이브리드 자동차, 에너지 저장 시스템(ESS)을 포함하는 다양한 종류의 제품들에 핵심 요소로써 사용되는 물질이다. 중국에서 수입하는 것이 미국 내에서 생산하는 것보다 더 싸다.  -- Yi Zhu, Bloomberg Intelligence senior analyst in May 21 report

The nation’s producers have rallied hard in recent weeks on the view that rare earths could be an ace in the trade war. President Xi Jinping visited a plant earlier this month, accompanied by his chief trade negotiator with the U.S., fueling speculation that the strategic materials could be weaponized in China’s tit-for-tat with the U.S.

 

 

Rare earths have already featured in the trade dispute. The Asian country raised tariffs to 25% from 10% on imports from America’s sole producer, while the U.S. excluded the elements from its own list of prospective tariffs on roughly $300 billion worth of Chinese goods to be targeted in its next wave of measures.

MORE ON RARE EARTHS AND THE TRADE WAR

Rare Earths Become Precious on Bet China Will Hit Back: Chart  Rare Earths, the U.S.-China Trade War and Your Phone: QuickTake  China Has a Rare Chance to Strike Back on Huawei: David Fickling Xi’s Trip to Rare Earths Plant Stokes Talk of Trade Retaliation  China’s Sway Over Tech Metals Under Scrutiny After Huawei Swoop

The U.S. relies on China, the leading global supplier, for about 80% of its rare earths, which are used in a host of applications from smartphones to electric vehicles to military gear. Rare earths, which include elements such as neodymium, used in magnets, and ytrrium for electronics, are relatively abundant in the earth’s crust, but mine-able concentrations are less common than other ores.

 

China’s rare earth market is dominated by a handful of producers including China Northern Rare Earth Group, Minmetals Rare Earth Co., Xiamen Tungsten Co. and Chinalco Rare Earth & Metals Co. The nation has form in using the elements to make a political point. It blocked exports to Japan after a maritime dispute in 2010, although the consequent spike in prices saw a flurry of activity to secure supplies elsewhere, which would be the risk again if Beijing follows through with its threat of retaliation.

China Northern rose as much as 7.7% in Shanghai, while Lynas Corp., the biggest producer of rare earth products outside China, added as much as 12% in Sydney. Both stocks are up by about a third this month. Hong Kong-listed China Rare Earth Holdings Ltd. spiked as much as 41% and has doubled in value in May.

Foreign Dependence

The U.S. relies on overseas shipments for a range of critical minerals

Source: U.S. Geological Survey. Includes only mineral commodities where China is biggest or second-biggest source of imports

 

China’s stranglehold is so strong that the U.S. joined with other nations earlier this decade in a World Trade Organization case to force the nation to export more amid a global shortage. The WTO ruled in favor of America, while prices eventually slumped as manufacturers turned to alternatives.

In December 2017, U.S. President Donald Trump signed an executive order to reduce the country’s dependence on external sources of critical minerals, including rare earths, which was aimed at reducing U.S. vulnerability to supply disruptions.

— With assistance by Dandan Li

 

 

기사원문 : https://www.bloomberg.com/news/articles/2019-05-29/china-gears-up-to-weaponize-rare-earths-dominance-in-trade-war?srnd=premium