China's August Rare Earth Exports To US Jump Amid Threat Of Export Ban | WHAT REALLY HAPPENED

China's August Rare Earth Exports To US Jump Amid Threat Of Export Ban

According to a new report from Reuters, China's exports of rare-earth magnets to the US in August jumped to the highest level in years, pointing to US firms scrambling to build stockpiles as China, the biggest rare-earth metals and alloys producer in the world, could slash flows of the minerals if the trade war continues to escalate into 2020.

New data from the General Administration of Customs of the People's Republic of China shows shipments of rare-earth magnets to the US rose 1.2% MoM to 452 tons. Exports to the US were 6.2% more than last year, and the highest monthly total since Jan. 2017.

Rare-earth exports to the US have been increasing since President Xi Jinping visited a magnet factory in May, with January to August shipments to the US up nearly 24% YoY to 2,984 tons.

China accounts for 90% of the global production of rare-earth magnets. The minerals are used in everything from vacuum cleaners to automobiles and fighter jets, which suggests many US firms could be affected if China decides to block shipments of rare-earth magnets.

Bloomberg sourced a recent Citigroup report that said a Chinese ban on magnet exports to the US would become "manageable if ex-China processing gets built out swiftly."

Webmaster's Commentary: 

To have put this ban into place, without numerous, defense-in-depth, resources getting contracted to fill the expected gap (which apparently, was something for which the Trump Administration totally, and catastrophically, failed to do), reminds me of the one-line from the American comic, Ron White, "You CAN 'T FIX STUPID!!"