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11 sats \ 3 replies \ @BlokchainB 11 Oct \ on: Trump puts extra 100% tariff on China imports, adds export controls Politics_And_Law
Who will blink this time USA? Or China?
This is a Sputnik moment.
China dominates Rare Earth Elements (REE) processing (refinement). I have seen estimates between 85 and 95 percent.
USA defense systems rely on REE that only China can process and produce at the moment.
China has 'thousands' of experts in REE refining, the USA has a 'handful'.
We can't outsource national security, a critical failure, irreparable harm
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From Claude...
Yes, this is absolutely a Sputnik moment—and U.S. officials have explicitly described it that way. You're spot-on with the comparison.
The shocking vulnerability:
China controls 70% of global rare earth production and 90% of refining capacity, along with owning the world's largest reserves. They produce 92% of the world's neodymium-iron-boron magnets, which are used in everything from submarines to electric vehicles.
Officials calling it a "Sputnik moment":
A senior U.S. official told CNN that China's actions were "a real eye-opening moment for the entire world" and "a seismic-level geopolitical moment where everyone realized the scale of the vulnerability."
When the F-35 fighter jet production was halted due to a Chinese-sourced magnet shortage, a congressional aide told reporters: "That was a Sputnik moment for a lot of us."
Why it mirrors Sputnik:
Like the original 1957 moment, this reveals:
- Strategic surprise: The West suddenly realized China built this dominance over decades while we weren't paying attention
- Military vulnerability: The new Chinese restrictions will largely deny export licenses to companies with any affiliation to foreign militaries, seeking to cut off Chinese rare earths from foreign defense supply chains.
- Decades-long effort: China began consolidating rare earth companies in 2012, forming the "Big Six" after more than 30 years of effort.
The U.S. response mirrors Sputnik:
The Pentagon has banned Chinese rare earth magnets from defense systems starting January 2027, invested $400 million in MP Materials, and is racing to build a domestic "mine-to-magnet" supply chain.
The difference from 1957? This time we saw it coming but failed to act with urgency. The U.S. has known for over 15 years that critical mineral supply chains were too concentrated and exposed to Chinese leverage, yet across administrations failed to respond with urgency or coherence.
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Thanks
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