President Donald Trump blasted China recently on Truth Social, saying Beijing had ‘TOTALLY VIOLATED ITS AGREEMENT WITH US.’ Trump furiously concluded, ‘So much for being Mr. NICE GUY!’
Apparently, in return for mutual deescalation of trade tensions, Beijing had committed to again allow the free flow of rare earth minerals to the U.S. However, they did not follow through on that promise. No wonder Trump was angry; he should not, however, have been surprised.
The White House will try to resolve this issue, and will hopefully again reduce mutual tariffs. The stock market will celebrate a near-term resolution, business managers will exhale, and shoppers won’t hoard Barbies for Christmas.
But longer term, the Trump White House must commit to eliminating our dependence on China for essential goods, which gives Beijing a stranglehold on our economy. China is an enemy and cannot be trusted. Relying on them for rare earths or for other critical goods, like pharmaceuticals, is dangerous.
Rare earths are ‘essential’; we need lanthanum and cerium, for instance, to make camera lenses and catalytic converters, respectively. Indeed, we need rare earths to produce everything from cars to missiles to cell phones. China accounts for about 60% of global mine output as well as 90% of processed materials. Our economy comes to a virtual standstill without these products. The Chinese know this and will take advantage of that reliance.
This is one reason that Trump’s proposal of a joint venture with Ukraine is brilliant. If the two countries can together begin to mine and process rare minerals, the U.S. will have a vested interest in defending Ukraine against Russian aggression (while our presence might presumably deter another assault) and the undertaking would also help alleviate our reliance on China. Ukraine is home to 22 of the 34 minerals classified as ‘critical’ by the EU; we need them.
It is not just rare earths and minerals we should be concerned about. Since the COVID-19 emergency, Americans have become increasingly aware that we also depend on China (and to a lesser degree India) for many essential pharmaceuticals, a reliance which could prove deadly should Beijing choose to block exports.
In last year’s first quarter, a total of 323 drugs were in short supply, according to data published by the American Society of Health-System Pharmacists, the highest level since reporting began in 2001. The shortages sent parents searching high and low for amoxicillin and other prescription drugs for themselves and their kids.
