Boeing(US:BA) Sou Hu Cai Jing·2025-09-10 20:14Core Insights - The U.S. defense officials are alarmed by China's export controls on tungsten, a critical metal for both military and civilian applications [1][4] - China dominates the global tungsten supply, producing 80% of the total output, which increases to 90% when including allies like Russia and North Korea [2][3] - China's technological superiority in tungsten extraction and processing poses a significant challenge for other countries attempting to reduce reliance on Chinese supplies [3][7] Industry Impact - The automotive and aerospace industries are particularly vulnerable, with companies like Volkswagen and Boeing assessing risks related to tungsten supply disruptions [4][6] - Japan's electronics sector, including major firms like Sony and Panasonic, is facing urgent procurement challenges due to their heavy dependence on tungsten [6][7] - The U.S. government's "Mineral Security Partnership" aims to create a supply chain independent of China, but lacks the necessary processing capabilities to be effective [7][9] Market Dynamics - Following China's export control announcement, there has been a notable increase in demand for tungsten, with a reported 26% year-on-year growth in export value for the first two months of the year [8] - A black market for tungsten products is emerging as companies seek to circumvent Chinese export restrictions [8] - China's strategic control over tungsten resources is part of a broader plan to reshape the global supply chain for critical minerals, enhancing its economic influence [9][10]