China restricts rare earth elements in escalatory spiral

China has moved to control global access to rare earth elements (REEs), vital for semiconductor and microchip production, creating further tensions with the United States. This development follows Beijing’s dominance in the rare earths market, with production reaching 240,000 tons in 2023, representing 68.6% of global output, reports 24brussels.

The United States has expressed deep concern regarding these new restrictions. China not only produces a significant portion of REEs but also processes 90% of them, a figure that rises to 99% for heavy rare earths. The US Geological Survey notes that 40% of the world’s rare earth reserves are located in China. Dean W. Ball, a Senior Fellow at the Foundation for American Innovation, remarked, “This is a very big deal,” highlighting the potential impact of these controls on the US semiconductor supply chain.

On October 9, China’s Ministry of Commerce unveiled new export controls via six announcements, affecting materials and technologies critical to various industries. The regulations will be phased in between November 8 and December 1, allowing Beijing to delay or restrict REE exports. In response, former President Donald Trump criticized China’s move on social media, describing it as unprecedented hostility and claiming the country seeks to impose controls on all aspects of production.

Trump indicated that the US would retaliate against these measures and suggested that upcoming discussions between him and Chinese President Xi Jinping at the APEC summit in South Korea could be jeopardized. He asserted that for each element China monopolizes, the US has alternatives, signaling a willingness to confront China’s market control.

On October 12, China’s Ministry of Commerce countered US threats of tariffs, asserting, “Resorting to threats of high tariffs isn’t the right way to engage with China.” The spokesperson emphasized that unilateral actions by the US have harmed Chinese interests and undermined bilateral economic relationships.

This escalation follows a pattern, as China previously imposed export restrictions on seven REEs in April in retaliation for American tariffs. Experts note that China may see these actions as necessary to protect its interests given perceived threats from the US. Ball elaborated that although these controls carry risks for China, they also serve as leverage in negotiations.

Chucheng Feng, founder of Hutong Research, identified the recent trade escalation as a direct result of expanded US export controls and indicated that such unilateral actions destabilize bilateral trade relationships. Beijing’s proactive response signifies its intention to assert economic influence amid rising tensions.

As both nations navigate these conflicts, significant implications arise for global supply chains, particularly in the semiconductor industry. The competitive dynamics of US-China relations will likely continue evolving, with strategic measures taken by both sides as they aim to secure their national interests.

Delhi govt declares Southern Ridge as “Reserved Forest” to curb pollution

The Delhi government has declared a 41-square-kilometer area of the Southern Ridge as a “Reserved Forest” in a bid to combat pollution and enhance the city’s environmental balance, reports 24brussels.

Chief Minister Rekha Gupta announced this significant initiative, emphasizing its impact on increasing Delhi’s green cover and improving air quality. The move is part of a broader effort to cultivate a sustainable environment for the capital.

“To protect Delhi from pollution and to strengthen environmental balance, the Delhi government has taken an important decision. The 41 square kilometer area of the Southern Ridge has been declared a ‘Reserved Forest,’ which will significantly expand Delhi’s green cover and improve air quality. This decision is a historic step towards realizing the resolve of ‘Green and Sustainable Delhi,’” Rekha Gupta stated on X.

In related environmental efforts, the Supreme Court indicated on Friday a possible lifting of restrictions on the use of green firecrackers in the National Capital Region during Diwali. A bench led by Chief Justice BR Gavai is set to deliberate on relaxing the current absolute ban.

Solicitor General Tushar Mehta represented Delhi-NCR and Haryana during the session, advocating for limited use of green firecrackers between 8 PM and 10 PM on Diwali, as well as on Christmas and New Year’s Eve. He assured the court that periodic inspections would ensure compliance with the regulations on approved green firecracker formulations.

This announcement follows the Supreme Court’s authorization on September 26 for the manufacturing of green firecrackers in Delhi, contingent on a prohibition against selling them in the National Capital Region.