By Ann - Dec 02, 2024
China has tightened export restrictions on tungsten to protect its local industries, manage resources sustainably, and increase influence over the global supply chain. This move has caused concerns among global manufacturers as supply chain disruptions and price increases are possible. Other nations may need to diversify their supply of vital minerals and increase production capacities to reduce reliance on China. The action highlights the increasing use of mineral resources as a geopolitical tool and the importance of international collaboration in controlling the flow of critical resources.
business-post.com via Business Standard
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Tighter export restrictions on this vital commodity were recently imposed by China, the world's top producer of tungsten. Because of its exceptional qualities—such as its high density, hardness, and melting point—tungsten is highly valued in sectors including electronics, defence, and aerospace. China wants to safeguard its local industries, maintain sustainable resource management, and increase its influence over the global supply chain by limiting its exports. This action is part of China's larger plan to use its hegemony over vital resources for geopolitical and economic gain.
Global manufacturers are quite concerned about the new rules, especially those in nations that import a lot of tungsten. Supply chain disruptions and pricing increases are possible for industries that utilize tungsten to produce high-performance equipment, machinery, and electronic components. Businesses may look for substitute materials or other sources as a result of these difficulties, but few can match tungsten's special properties.
The stricter regulations emphasise how crucial it is for countries outside of China to diversify their supply of vital minerals. It's conceivable that nations like the US and EU members will step up their efforts to build up their own production and recycling capacities. In order to lessen reliance on China, alliances with other tungsten-producing countries, such as Vietnam and Russia, may also become a strategic priority. Furthermore, the move highlights the increasing use of mineral resources as a geopolitical tool. China's strategy underscores the importance of maintaining control over key materials in an era of technological competition and shifting global alliances. As demand for tungsten grows in emerging sectors such as electric vehicles and renewable energy, China's grip on the market raises concerns about resource nationalism and its potential to influence critical industries worldwide.
China's action further highlights the growing relationship between geopolitics and resource management. Such measures might result in changes in the dynamics of global trade and increased tensions between big countries as competition for essential resources heats up. China's export restrictions are intended to protect its economic interests, but they also serve as a reminder of how crucial international collaboration is to controlling the flow of vital resources.