Sou Hu Cai Jing·2025-06-29 07:05Group 1 - China will implement export controls on seven rare earth elements starting April 2025, which are critical for high-end manufacturing in defense and technology sectors [3][12] - The U.S. military heavily relies on imported rare earth elements, with 92% of its needs met through imports, over 70% of which come from China [5][10] - The price of rare earth elements has surged from $425 per kilogram to $850 per kilogram, indicating a significant supply-demand imbalance [14] Group 2 - The U.S. lacks the capability to independently refine all heavy rare earth elements, which are essential for advanced military equipment like the F-35 fighter jet [10][20] - China controls 85% to 95% of global rare earth processing capacity, while the U.S. has almost no commercial heavy rare earth separation facilities [21] - The U.S. faces high costs and strict environmental regulations that hinder its rare earth mining and processing capabilities, making it difficult to compete with China's low-cost production [21][22] Group 3 - A wave of executive departures in China's rare earth industry has raised concerns about potential technology leaks, prompting the government to strengthen its technology sovereignty measures [24][26] - China has established a tracking system for rare earth exports to prevent military misuse and has intensified efforts to combat illegal exports [26][28] - The strategic value of China's rare earth resources has become a significant leverage point in geopolitical tensions, particularly as Western nations attempt to decouple from Chinese technology [28][30]