Claus Soong
Just like coal and oil in the past, rare earth elements (rare earths) and semiconductors have become vital to economic development and national security today. Unlike other strategic interests, rare earth and semiconductor chips require enormous intelligence and capital inputs to produce. Other than economic factors in production and manufacturing, geopolitical considerations are inevitably directing the path of technology policy, especially under the intensified US-China competition after the Trump Administration initiated the tech war and trade war against China. As strategic goods, rare earths and semiconductors show their significance toward unlocking the potential of green tech for the next-generation industrial revolution, such as producing efficient communication equipment and batteries. The sustainable supply of rare earth and semiconductors also involved substantial American interests in economic development and national security. Under the background of the US-China competition, as 90% of the supply of rare earth is controlled by China, rare earth elements could be politically weaponized. For semiconductors, under its Civilian-Military Integration Strategy, China seeks to develop the most advanced technology, evading American sanctions, and to use rare earths as a political weapon to paralyze the manufacturing supply chain are detrimental to American national interests and security.
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