North American Tungsten Corporation Ltd (NATUF)

[StockRoomBully]

CHINA SENT OUT A WARNING !!

I like! Cornish Metal inc Dec 1st getting closer

"China is reported to be cutting off rare earth supplies to the United States defence manufacturer Lockheed Martin and other American companies in retaliation for the companies supplying Taiwan with military hardware.

But this move should not be read merely as a tit-for-tat against a few particular companies.

It is, however, a clear signal to the US defence establishment that China holds the whip hand."

Rare earths are crucial in the manufacture of advanced weapon applications.

Without them, the Chinese could hobble the US military (and the forces of its allies) while itself having full operational capacity in a time of conflict.

The US gets 80% of its rare earths from China. That is the officially quoted figure but with Australia’s Lynas Corp (ASX: LYC) the only non-China supplier of any considerable substance, the percentage is probably higher.

This latest sanction move must be sending chills down backs in the Pentagon.

If China can cut off rare earths to Lockheed Martin and others, what is to stop them widening the export bans to other suppliers to the US military? Those same suppliers also provide equipment to key US allies, including Japan and Australia.

Lockheed Martin makes the F-35 fighter and Patriot missile.

The company is also working on a new tactical fighter, whose optical systems require the rare earth minerals erbium and neodymium.

Sanctions come into force in December
According to Japanese reports this week, the new Chinese law goes into effect on 1 December.

It is believed in Tokyo that the moves are also part-related to Western government shutting out Huawei.


https://smallcaps.com.au/china-sends-warning-cripple-us-defence-system-turning-off-rare-earths/