America’s Perplexing Dilemma: 100% Reliance Upon China For Rare Earth Elements

The United States defense industry relies on Chinese producers for 100 percent of its rare earth materials, which a 2016 Government Accountability Office report called a “bedrock national security issue.”

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A New China Rare Earth Embargo Would Damage Several U.S. Companies’ Technology Competitiveness

The U.S. and China are embroiled in a trade dispute, and the Chinese could readily impose a tariff on rare earth elements as it did in 2010. China supplies between 85% and 95% of global demand for the 17 rare earth powders and metals used in high-tech applications such as smartphones, catalysts, LED screens, polishing. U.S. companies whose products incorporate rare earth materials, would be at a competitive disadvantage if the Chinese were to impose a rare earth tariff.

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