Derf's Grotto

[fung_derf]

Ð......... Am I the only one following this closely? Why is the US not doing something about China buying up the rare earth mines in the US? How does the government push electric energy knowing it will take control away from the US?

The U.S. is seeking to ‘de-risk’ from China. Here’s what that could look like:
The U.S. isn’t trying to decouple from China, just “de-risk,” U.S. National Security Advisor Jake Sullivan said on Thursday. But he also indicated the complexities of de-risking such an entangled relationship--and therein lies the challenge for companies and investors. Earlier this month, policy makers at the spring meetings of the International Monetary Fund also warned that if the U.S.-China relationship continues to deteriorate, the “fragmentation” of trade could shave as much as 7% of global economic activity over the long term if countries are forced to pick sides. For investors, the concern is what types of emerging technologies--such as advanced semiconductors, quantum computing, artificial intelligence, and synthetic biology--could fall under the national security banner over time. Sullivan stressed the U.S. has no intentions of cutting off trade, but is using a “small yard, high fences” approach. “Export controls will remain narrowly focused on technology that could tilt the military balance--simply ensuring U.S. and allied technology isn’t used against us,” Sullivan said. Another area of focus: critical minerals that are the backbone for a transition away from fossil fuels. The U.S. produces just 4% of lithium, 13% of cobalt--and none of the nickel and graphite needed to meet demand from electric vehicles. China, however, processes 80% of all critical minerals. Sullivan said the aim isn’t to “recede into autarky,” but to work with allies to create supply chain ecosystems that are more resilient to natural disaster, geopolitical shocks, or economic coercion from the likes of China. These shifts could come with economic costs, especially for U.S. allies that rely more on exports to China. Barrons.com