FT learned about Western concerns about the trade dispute between the United States and China

The renewed trade dispute between the United States and China may cause difficulties in the supply of rare earths and hinder the production of weapons in the West. This was reported on October 14 by the Financial Times (FT) newspaper, citing sources.

The export restrictions imposed by China will lead to higher prices for materials needed for the production of F-35 fighter jets, Tomahawk missiles, radar systems and drones, the material says.

According to Graceline Baskaran, an expert at the US Center for Strategic and International Studies, the new rules provide for the withdrawal of even minimal amounts of Chinese materials from military supply chains, which will have a very negative impact on the economy.

Chinese export restrictions will lead not only to expensive improvements, but also to the search for alternative sources of supply, said the American technology startup ePropelled, which manufactures engines for drones.

Round Two: Why the US-China Trade War has resumed

Beijing's export controls on rare earth metals have provoked a strong reaction in Washington.

On October 10, US President Donald Trump announced the readiness of the United States to impose increased duties on goods from China in response to Beijing's decision to restrict exports of rare earths. According to him, Beijing is "holding the world hostage" by creating a monopoly on the market of magnets and other metals.

The FT learned on October 12 that the United States intends to increase its reserves of critical minerals by up to $1 billion in order to counter China's dominance in the extraction of rare earths. According to the newspaper's interlocutors, the United States is increasing its reserves purposefully, as it is looking for new sources of materials needed for defense products.

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