China plotting to 'exploit Russia' to expand into Indo-Pacific
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Major cities across China have been placed under lockdown as the latest outbreak of Covid rages through the population. Since then, experts have warned of potentially devastating impacts on various supply chains, especially with manufacturing hubs like Shenzhen being brought to a standstill. Aside from creating a potential shortage of iPhones and vehicles, the lockdown has also brought to light the critical supply of precious metals and minerals that China provides.
According to a report by the EU Commission, China produces 98-99 percent of all the “rare Earth elements” in the world.
These are a collection of 17 rare metallic elements that are used in heavy industry and high-tech uses, especially in the developed world.
Given China’s dominance in the supply of such minerals, Jason Kaplan founder and Director of Commodities Analysis and Insight Ltd, warned that Xi could use this monopoly to influence political pressure on countries like the UK and the EU.
Speaking to Express.co.uk, he said: “The UK, and Europe as a whole are very reliant on Chinese supply for a lot of different commodities.
“The moment they have any kind of logistical challenges, there’s less coming into the UK and the EU.
“Europe has a list of critical minerals, which are focused on those minerals or materials that the EU needs and isn’t self-sufficient in.
“Basically, a lot of our industries will somewhat grind to a halt if flows from China stops its supply”.
According to the EU Commission report, these raw materials are crucial for developing clean technologies like wind turbines, solar panels, and electric vehicles.
Mr Kaplan continued: “We’ve seen it with Russia where people believed that Russia was not supplying the volumes of gas it could have done to try and exert some political pressure.
“China is so dominant in some specific minerals that would be very easy for it to exert political pressure by cutting off countries.
“This is a really big worry for the EU, US and UK.
“If China wants to be pugnacious and do something that will generate and kind of conflict, and they cut off access to these minerals.
“We can’t make electric cars, we can’t make wind turbines, all our energy generation becomes a lot more inefficient.
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This kind of strategy from China would be right out of the playbook of Russian President Vladimir Putin, who squeezed gas supplies flowing to the EU for months leading up to his invasion of Ukraine.
This manipulation exaggerated the energy crisis created by a global economy that had a high demand as a result of a post-pandemic recovery.
As an example, Mr Kaplan said that China produces most of the world’s neodymium, which is a rare Earth element that is used in magnets.
But without this metal, he warned that the magnets made in the West would be far less efficient than what they are now.
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