Right now a new political and economic situation is being created in the world. America wants India and Europe to join hands with it to stop China’s control over rare earth minerals. But the interesting thing is that on one hand America is imposing heavy tariffs on India and on the other hand it is expecting cooperation from India.
In fact, America When Finance Minister Scott Besant was asked how the US would distance itself from China’s control over rare earth minerals, he told Fox News, “We expect support from India and European countries.”
This statement of the American official seemed normal on the surface, but considering America’s own trade policy, it is being considered contradictory. Reason, America has imposed 50 percent tariff on India and from India itself China It is also expected to unite against. Before this, Besant herself had been giving open statements against India.
Besant presented it as a global war. He said, “This is China versus the world. We will not let this happen. China is a command-and-control economy. We will assert our sovereignty in different ways. We are already in touch with allies. We will meet them this week. I expect substantial global support from European countries, India and democracies in Asia and we will not allow export restrictions and surveillance to continue.”
China accused of war funding
Besant accused China of taking aggressive steps and funding the war. He said that China’s ban on rare earth minerals export is a threat not only to America but also to the global economy. He claimed, “America is striving for peace in the world, while China is financing war.”
Analysts drew attention to the contradiction
During the conversation, analysts pointed out to Besant the paradox that President Trump has postponed 100 percent tariffs on Chinese goods until November 1 to reduce tensions ahead of the potential meeting. At the same time, tariffs are applicable on India, from which America is expecting cooperation.
Besant ignored this contradiction and said that America does not want isolation but wants to reduce the risk. He said, “We do not want isolation. We want to reduce risks. Bringing critical minerals, semiconductor independence and pharmaceutical industry into the country are part of this, and all this is happening under the America First agenda.”
China tightens rare earth minerals export rules
Let us tell you that last week China imposed duty on American ships because Washington has expanded its export related rules. China’s latest restrictions on the export of rare earth minerals have raised concerns in Washington. Officials have warned that the move could affect the US defense industry and give Chinese President Jinping an opportunity to put pressure on President Trump in upcoming trade talks.
Importance of rare earth minerals in US military power
Rare earth magnets are the basis of America’s military technology. According to the US Defense Department, these are used in F-35 fighter planes, Virginia and Columbia class submarines, Predator drones, Tomahawk missiles and advanced radar and precision guided bomb systems.
China’s dominance in the supply chain makes it a global leader. China controls about 60 percent of the world’s mining and 90 percent of refining. According to the US Geological Survey (USGS), approximately 70 percent of US rare earth minerals imports currently come from China.
India’s rare earth minerals potential
India has large reserves of rare earth minerals, especially monazite mineral, but its processing and refining capacity is far behind that of China. India plans to launch a National Critical Mineral Stockpile (NCMS) to ensure supply of rare minerals required for clean energy, defense and high-tech manufacturing. Under this scheme, the government has also allocated Rs 500 crore so that any kind of shock in supply can be avoided and domestic industries can continue to get the materials.
India has an estimated 7.23 million tonne reserve of rare earth oxide monazite with 13.15 million tonne reserves. These are mainly found in Andhra Pradesh, Odisha, Tamil Nadu, Kerala, and in some parts of West Bengal, Jharkhand, Gujarat, Maharashtra.
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