China has reduced the export of rare earths in December as compared to the month of November.
The tension between China and Japan is not hidden from anyone in the world. Now the war at sea has reached the mines. Which has been started by China, the world’s second largest economy. The enmity between these two will not only trouble India, but its impact can be seen on the world. It would not be wrong if we say that a great crisis is knocking loudly at the door.
According to Bloomberg report, China has reduced the supply of rare earth metals. Also, further decline may be seen in the coming days. Due to which the machines of auto and electronics sector as well as many other sectors may be on the verge of closure. The effect of which can be seen on the prices of EV and mobile. Let us also tell you what kind of information has been given in the Bloomberg report.
Export of rare earth decreased
China’s exports of rare earth products have declined in December compared to the previous month. According to the information, investors are keeping an eye on the increasing tension between Beijing and Japan, due to which shipment controls may become more stringent. According to customs data released on Sunday, exports of these materials used in electric vehicles, weapons systems and high-tech manufacturing totaled 6,745 tonnes, which was 6,958 tonnes in November. This category primarily includes rare earth magnets, a product that has brought significant benefits to China in several trade disputes that have shaken the markets.
There was an agreement between US and China
In recent years, rare earths have become a point of contention in trade relations, with the US and other countries trying to challenge China’s dominance over their mining and processing. Although Beijing and Washington struck a trade deal in October that eased tensions, attention has turned to Japan after China’s Commerce Ministry announced controls on shipments with potential military uses. This announcement came after comments made by the Prime Minister of Japan regarding Taiwan last year.
More details will come on Tuesday
Following the ministry’s statement, China Daily reports that Beijing is also considering stricter scrutiny of mineral export licenses in the country. The export data released on Sunday contains details of minerals shipped to all destinations and does not provide detailed information based on geographical location or product type. More detailed figures are expected to be released on Tuesday.
sound of a disaster
There is no sign of any major crisis due to reduction in the supply of rare earths or in short exports from China. This is being said because rare earth is used extensively in auto and electronic sectors. If its supply reduces then there may be a reduction in production in the coming days. Apart from petrol and diesel vehicles, there may be a huge jump in the prices of EVs. A similar situation can be seen in the electronic sector. At present, India has emerged as a new power in the electronic sector. In such a situation, if there is a reduction in production, there may be a major disruption in the supply chain.