Former Biden Official Says It Will Take ‘a Generation’ to Diversify Dependency on China for Rare Earths
Udumbara
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Former Deputy Secretary of State Kurt Campbell says it will take “a generation” to diversify some of America’s dependency on China for critical minerals and other global supply chains. Despite this, however, he says China does not have the upper hand over the United States.
Campbell made the comments on June 25 during an interview with Bloomberg TV when asked why there has been a lack of effort to “de-risk” from America’s greatest adversary in such critical areas as rare earths, which are used in everything from household electronics and automobiles to missiles and radar systems.
“It turns out ... that the efforts to diversify in terms of rare earths and other supply chains is unbelievably difficult,” Campbell told Bloomberg.
He added that efforts to “de-risk” from reliance on the communist regime began under the first Trump administration and continued under the Biden administration but that some of those efforts will “take a generation to fulfill.”
“So we are still very much reliant in key areas such as magnets, which we read a lot about in China. But I will tell you this, I think it is wrong to say that China in this area has the upper hand,” Campbell said. “Yes, there are certain areas where China could do enormous damage to American manufacturing in high tech. But it is also the case that the United States can take actions that could really impact the Chinese economy.”
Campbell added that China and the United States are both “vulnerable” and “interdependent.”
His comments come shortly after President Donald Trump announced his administration had reached a trade agreement with Beijing to supply magnets and rare earth minerals in return for the United States continuing to allow Chinese students to attend its colleges and universities.
Full magnets and any necessary rare earths would be supplied up front by China, Trump said.
“Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!)” Trump said, adding that the United States would have tariffs on Chinese goods of 55 percent while China is “getting 10 percent.”
“Relationship is excellent.”
In April, the Chinese regime placed export restrictions on rare earths in response to Trump’s U.S. tariffs on China, which at one point stood at 145 percent, before he agreed to lower them.
That order states that the United States faces “unprecedented economic and national security challenges in securing reliable supplies of critical minerals independent of foreign adversary control” and that mineral resources and rare earths are “key to strengthening our economy, securing our energy future, and reducing dependence on foreign suppliers for critical minerals.”
It adds that the United States must advance leadership in seabed mineral development by strengthening partnerships with allies and industry to “counter China’s growing influence over seabed mineral resources,” among other things.
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