China's Latest Trade Threat Could Actually Turn Out To Be A Huge Opportunity For the US

Reports of Chinese threats to escalate its trade dispute with the Trump administration to include rare earth minerals has, once again, shined a spotlight on U.S. dependency for elements used in hundreds of hi-tech products and military equipment.“China is letting the U.S. know that it has leverage,” said Dan McGroarty, head of the American Resources Policy Network (ARPN), which advocates for mineral exploration.McGroarty said reported Chinese threats to play the “rare earths card” could galvanize support for legislation or further executive actions to ameliorate U.S. mineral dependence. “The irony, and that is an understatement, is that the U.S. has rare earth deposits capable of meeting national security needs, and ending the reliance on China,” McGroarty said. “With China saber-rattling on the rare earths, this could be the time for a strong U.S. response.”America’s rare earth mineral dependence is a long-standing issue. Starting in the 1990s, China began ramping up its rare earth production, dumping tons of low-priced minerals on the global market and driving U.S. miners out of business.Now, U.S. rare earth mineral production is virtually non-existent and China controls roughly 90 percent of global trade. The U.S. gets about 80% of its rare earth minerals from China.

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