WHY DID CHINA BLOCK EXPORTS OF RARE EARTH ELEMENTS?

What are rare earth elements? Why did China restrict their imports? How do the restrictions impact India?

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Amid the ongoing U.S.-China trade war, Chinese authorities have reportedly imposed export controls on rare earth elements (REEs) and magnets that are needed in a range of manufacturing activities, from semiconductor fabrication units to defence equipment. This has been one of the more recent salvos in the trade war between the two countries, but the export restrictions apply to any Chinese refinery that can export refined rare earths outside the country.

What are rare earth elements?

Rare earth elements are a series of seventeen substances that are present in the earth's crust. Unlike what the name may indicate, rare earths occur plentifully in nature, but the rarity comes from the ability to isolate them chemically and make them usable in industrial applications. Heavy and light rare earths occur naturally in several countries, such as India, China, Myanmar, Japan, Australia and North Korea.

China's curbs target dysprosium, gadolinium, lutetium, samarium, scandium, terbium, and yttrium, seven of the seventeen elements classified as REEs.

Dysprosium's so-called magnetic susceptibility makes it ideal for use in hard disks and car motors; gadolinium is used in nuclear reactors for shielding and in some medical equipment;