The Yomiuri Shimbun reported on the 5th that the Chinese government is considering banning the export of magnet manufacturing technology to control the supply chain of rare earth magnets, which are key raw materials for electric vehicles and wind turbine motors. It is interpreted as meaning that China will use electric vehicle material technology as a weapon against the reorganization of the semiconductor supply chain centered on the United States, such as Japan’s decision to regulate the export of 23 types of high-tech semiconductor equipment to China from July.
According to a Yomiuri report, the Chinese government decided to add neodymium and samarium cobalt magnet manufacturing technologies to the revision of the ‘China Export Control and Export Restriction Technology List’, which contains export control items of industrial technology, and started listening to opinions. It is expected to be confirmed within the year at the earliest.
Neodymium is a key material for electric vehicle motors, and it is difficult to replace it with other materials with current technology. 84% of the world market is occupied by China. The share of Chinese-made neodymium in Korea also reaches 88%. China has production capabilities at all stages, including mining, separation, refining, and production, so it is feared that if the export ban becomes a reality, it will hit South Korea and Japan.
China’s review of a ban on exporting electric vehicle material technology is interpreted as a measure to seize hegemony in this field in response to the expansion of the electric power generation industry amid the global decarbonization trend. If China bans the export of manufacturing technology, the global electric car industry will become more dependent on China than it is now, and China can control the entire world market.
The newspaper said, “The Xi Jinping regime views magnets as a strategic item related to national security.” added. China is also reviewing a ban on exports of silicon, which is a material for solar panels.
Regarding Japan’s decision to restrict exports of 23 types of high-tech semiconductor equipment to China, Chinese Foreign Minister Qin Gang said at a meeting between the Chinese and Japanese foreign ministers on the 2nd, “The United States has put brutal pressure on Japan’s semiconductor industry in the past, but this time it is against China. “We are using that old method,” he said, adding, “Japan should not create counterfeits.” Wihojakchang means ‘You must not act as a pawn of a bad person’. Regarding this, Japanese Foreign Minister Hayashi Yoshimasa hinted that he had no intention of backing down, saying, “This is not a measure targeting a specific country.”
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.