ZGXT(SZ:000831) Sou Hu Cai Jing·2025-05-26 09:49Core Viewpoint - China's export control on rare earth elements is not limited to the United States but extends globally, significantly impacting global prices and creating pressure on companies in various countries, including India [1][3]. Group 1: China's Rare Earth Industry - China has significantly strengthened its control over rare earth exports over the past nine years, allowing for effective implementation of export measures [3][10]. - In 2023, China accounted for two-thirds of global rare earth production, with a production volume of 240,000 tons out of a total of 356,000 tons [7]. - China is the largest exporter of rare earth elements, representing 64% of global export value and 86% of export volume in 2023 [7]. Group 2: Global Impact and Reactions - The rising prices of rare earth elements have led to discomfort among U.S. companies and prompted Indian scholars to advocate for reducing dependence on Chinese rare earth products [1][3]. - Indian scholars suggest measures such as recycling old products for rare earth elements and diversifying import sources, but these measures face significant implementation challenges [5][8]. Group 3: Technological and Strategic Considerations - China monopolizes the refining technology and production capacity of rare earth elements, controlling over 90% of the production of certain rare earth products, particularly heavy rare earth elements [5][10]. - The Chinese government has implemented strict export controls on key technologies related to rare earth extraction and processing, which are expected to have long-term effects on global supply chains [15]. - The establishment of two major state-owned rare earth groups in China has facilitated effective control over the industry, allowing for better management of export regulations [10][15].