China's export curbs on rare earth minerals worry Europe

China is flexing its economic muscle in more senses than one. Its decision to restrict exports of the rare minerals and magnets has sent shivers down the spines of global automakers in Germany and in the United States.

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Rare earth minerals are needed in key sectors like car manufactures, semi-conductor industry, aerospace industry. The Chinese possess half of the global rare earth mineral reserves. The Chinese decision was mainly to counter US President Donald Trump's refusal to export crucial computer chips needed for Al, and the US’ refusal to allow imports from Chinese chipmaker Huawei.

More importantly, what has angered the Chinese is the refusal of student visas to Chinese students, and the cancellation of the visas of those who are students in American universities. Europe is caught in a crossfire in the trade war between the giants, the US and China.