“Rare earths” sound like materials warlocks would temper weapons with in a fantasy epic. But they are core elements in a high-tech trade war that is painfully real for business. The group of 17 metals are used in everything from electric car motors to smartphones. China, with 80 per cent of world supply, has threatened to ban exports to the US.
It is a potent warning. A ban would hurt many US companies. This would show that President Donald Trump’s attack on telecoms group Huawei has a cost. In a long-running conflict, China’s rare earth advantage would not last though.
About half the world’s deposits of elements such as Samarium and Yttrium are outside China. Chinese dominance results from low processing costs. After Mr Trump signed an executive order intended to reduce US dependence on Chinese rare earths, reliance actually increased.