China vs whole world
While on one hand the country is busy in shopping during the festive season, on the other hand another big war of rare earth minerals has broken out at the international level. Trade tension between America and China has once again emerged and this time America has clearly said that now it is not just America vs China, but China vs the whole world.
Rare earth materials are those special minerals which are used in high-tech things like mobiles, missiles, electric cars, and satellites. Today’s world is largely dependent on them and their biggest source is China, which alone captures more than 70% of the world’s production and more than 90% of its processing.
China imposed new ban, America warned
Recently, China has imposed strict restrictions on the export of some important rare materials. This can have a direct impact on the technical and military supply chain of America and its allied countries. In response, America has threatened to impose 100% import duty on China.
But America does not want to stop here. US Finance Minister Scott Besant has said that America will no longer fight alone. He clearly said, ‘We expect support from democratic countries of India, Europe and Asia.’
Why is America eyeing India?
India has reserves of rare earths, although they have not been fully exploited yet. But if right technology and investment is available, India can become a great alternative to America. America is confident that India will support on this occasion.
Finance Minister Besant said, ‘We are talking to colleagues. We will get strong support from India and other democracies. Targeting China, he said that China wants to control the supply chain of the entire world, but America will make full use of its economic sovereignty.
There is already pressure on India, but now the opportunity has increased
The Trump administration had recently imposed a 25% tariff on India and an additional 25% duty on Russian oil purchases, taking the total duty on India to 50%. In such a situation, this is both a challenge and an opportunity for India. If India partners with America, then avenues of new technology, investment and trade can open.