China is further tightening the export of vital elements of the earth that are needed in various industries such as automotive, sustainable power, telecommunications and semiconductors. This is seen as responding to various restrictions imposed by the United States and its allies on China to access the latest technological equipment.
According to a report by The New York Times, dysprosium export controls have been tightened with this rare earth being used in the manufacture of electric motors and semiconductors. China controls 99.9% of the world's dysprosium production with a processing plant located in Wuxi. Previously, China limited the export of gallium, germanium and antimony which are also important for the production of semiconductors.
This export barrier will give positive impetus to Estonia, France and Malaysia which have dysprosium processing factories. Lynas insists their factory located in Kuantum will start processing dysprosium starting next year.
Although the trade war between China and the United States has caused instability in the world economy, it is not the first time it has received positive reviews. The expansion of semiconductor factory and data center operations in Malaysia over the past two years has occurred because Malaysia is seen as neutral to both countries. In this situation it is better for Malaysia to nod in the murky waters than to be a dead deer in the middle.