Today's Business Headlines: 1/10/25
China has a chokehold on the world’s supply of critical minerals – and experts are warning the situation is a major risk to US national security if the government doesn’t step up its efforts to compete.
If diplomatic relations get worse or an actual conflict breaks out the two countries, US lawmakers and experts fear that China, led by President Xi Jinping, could cut off the supply entirely – with disastrous consequences for the US auto industry, tech firms and the Pentagon.China’s decades-long effort to corner the market is heavily subsidized by Beijing, which uses its control over the supply to manipulate prices and enacts ever-tighter export controls to cement its dominance.
The idea of a total embargo isn’t so far-fetched. In 2010, China briefly halted shipments of rare earth elements to Japan while the two countries were embroiled in a territorial dispute. As of now, the permitting process is “still very cumbersome,” according to Barbara Arnold, a professor of mining engineering at Penn State University.
By comparison, China imposes few environmental restrictions on its mining projects – and has built a domestic supply chain “contaminated with forced labor and environmentally degrading mining and refining practices,” according to a recent report by the select committee. Canada, for example, offers “flow-through shares” that make investments in so-called junior mining outfits tax-deductible. The smaller firms handle site exploration and assess the feasibility of a given site, then approach larger firms to bankroll operations.
Tech China Congress Gadgets Military Mining Smartphones
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Police search for whoever discarded a bulldog inside a trash bag in IowaToday's Business Headlines: 12/12/24
Read more »
Flight attendants reveal the surprising day to travel ahead of Christmas rush -- and other hidden tipToday's Business Headlines: 12/12/24
Read more »
Holiday heist diverts $1M in toys on 3 different trucks — in new type of scam that threatens US businessesToday's Business Headlines: 12/12/24
Read more »
LinkedIn billionaire Reid Hoffman fears Trump will have IRS audit him as revenge for supporting Kamala Harris: 'He was threatening personal and political retaliation'Today's Business Headlines: 12/12/24
Read more »
Tennessee pizza shop faces backlash after declining to cater same-sex weddingToday's Business Headlines: 12/17/24
Read more »
Dow soars over 700 points as investors welcome surprising inflation dataToday's Business Headlines: 12/18/24
Read more »