US Think Tank: China's Rare Earth Export Restrictions Pose "Threat to Defense and Security"

CSIS: "Rare earth elements are difficult to substitute"
Essential for fighter jets, submarines, missiles, radars, and drones
U.S.-China military capability gap expected to widen

The U.S. think tank, the Center for Strategic and International Studies (CSIS), has warned that China's export restrictions on strategic resources such as heavy rare earth elements pose a serious threat to U.S. national defense security.

In a report released on the 14th (local time), CSIS stated that China's export restrictions on heavy rare earth elements will impact the U.S. defense technology supply chain and predicted that "the U.S. will not be able to compensate for the supply shortage," potentially widening the military capability gap between the U.S. and China.

Earlier, on the 4th, the Chinese government announced export restrictions on seven types of heavy rare earth elements?including gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium?as well as rare earth magnets, as part of retaliatory tariffs against the U.S. Donald Trump administration. Currently, China produces 99% of the world's supply of heavy rare earth elements and 90% of rare earth magnets.

Rare earth elements are critical because they are essential resources for advanced defense technologies such as fighter jets, submarines, missiles, radars, and drones. CSIS also noted that "China is producing weapons at a rate 5 to 6 times faster than the U.S.," adding that "the U.S. already lacks sufficient defense production capacity and has reached the limits of its expansion potential."

In particular, it is expected to be difficult for the U.S. to independently supply rare earth resources, which it previously sourced from China, through its domestic supply chain. In fact, with a 70% dependence on China for rare earth elements, the U.S. plans to keep all response options open and under review.

On the previous day, Kevin Hassett, Chairman of the U.S. White House National Economic Council (NEC), responded to questions about China’s move to control rare earth exports by saying it was "concerning." Speaking to reporters at the White House, he said, "The rare earth restrictions are being reviewed very carefully. We are currently considering all options."

CSIS pointed out that "currently, there is no heavy rare earth separation and refining operation in the U.S.," adding that "although facilities are under construction, it will take several years before commercial operations begin."

Meanwhile, China has added a total of 16 U.S. companies, including 15 in the defense and aerospace sectors, to its export control list. By making it impossible to import dual-use resources?including rare earth elements?China is increasing pressure.