Tech Diplomacy Now: Cracks in China’s Embargo of Rare Earth Minerals
Rising prices have created opportunities for competitors.
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Michelle Giuda on Bloomberg TV: We Need Both—Maximum Proliferation and Maximum Security of U.S. Tech
Krach Institute CEO Michelle Giuda appeared with Bloomberg’s Ed Ludlow to discuss the two imperatives of the deals with the Gulf nations: “One is maximum proliferation of American technology, including our semiconductors, because if it’s not our technology, it’s going to be our adversaries’ technology, like China. At the same time, we also have to have maximum security controls to make sure that those technologies don’t get diverted toward adversaries.”
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Through this collaboration, SIG University will provide its 30,000+ global membership with preferred access to the Krach Institute’s Tech Diplomacy Academy, a first-of-its-kind, scalable online education platform designed to equip professionals at the intersection of technology, business, policy and global commerce.
Top News of the Week – Cracks in China’s Embargo of Rare Earth Minerals
One of the main fears in the United States is that China might use its dominance in rare earth and critical mineral processing to harm U.S. and ally industries. Since the summer of 2023, Beijing has started to impose ever more stringent export controls on its critical minerals. But the world is adapting, and China is starting to see that its dominance is built on a weak foundation.
Key Points:
China has imposed some of the most restrictive export controls on certain rare earth elements and processed critical minerals. This has led to an increase in the price of these commodities.
But given that China’s dominance is based on making these commodities cheaply, rising prices have meant that other players, in other countries, can now enter the market and sell these processed minerals at a profit.
This undermines the entire foundation of China’s dominance in critical mineral processing and means that its firms cannot sell their products as others replace them in the marketplace.
More on Background:
Rare-Earths Plants Are Popping Up Outside China – WSJ, May 19, 2025
Global supply chains threatened by lack of Chinese rare earths – FT, May 19, 2025
Australia's Lynas makes heavy rare earths breakthrough in Malaysia – Nikkei Asia, May 18, 2025
Rare earths race heats up with US-Saudi deal and Shenghe acquisition – Nikkei Asia, May 15, 2025
If the US wants more rare earths, it needs to tackle refining – FT, May 15, 2025
China Resumes Rare Earth Exports Under Tight Controls as Global Prices Soar – Caixin Global, May 15, 2025
Beijing has issued first rare earth magnet export permits, Volkswagen suppliers on the list – Reuters, May 13, 2025
When the country tried to choke off supply of the metals before, the world found ways to adapt. – WSJ, May 12, 2025
Latest News
Trump's Gulf tour sparks AI, finance and energy deals – Reuters, May 16, 2025
EU court rules that tracking-based online ads are illegal – The Record, May 16, 2025
Outsourcer in Chief: Is Trump Trading Away America’s Tech Future? – NYTs, May 15, 2025
11 points on India-Pakistan – James Crabtree, May 11, 2025
Technology Strategy and Policy
Japan enacts new Active Cyberdefense Law allowing for offensive cyber operations – The Record, May 16, 2025
US Commerce Department Announces New Export Compliance Expectations Related to Artificial Intelligence – Mayer Brown, May 16, 2025
Dual-use tech poses national security risks for businesses: ex-US official – Nikkei Asia, May 15, 2025
US warns against using Huawei chips ‘anywhere in the world’ – FT, May 15, 2025
China’s Defense Industry Is Getting a DeepSeek Moment – Bloomberg, May 14, 2025
Trump administration officially rescinds Biden’s AI diffusion rules – TechCrunch, May 13, 2025
Republicans Try to Cram Ban on AI Regulation into Budget Reconciliation Bill – 404Media, May 12, 2025
U.S. inks bill to force geo-tracking tech for high-end gaming and AI GPUs – Tom’s Hardware, May 12, 2025
Artificial Intelligence
Former Apple Design Guru Jony Ive to Take Expansive Role at OpenAI – WSJ, May 21, 2025
Nvidia Opens Up Its Platform, Plans AI Supercomputer in Taiwan – WSJ, May 19, 2025
Trump's Gulf gamble: Helping UAE and Saudi become AI powers – Axios, May 18, 2025
U.S. Officials Scrutinize Apple Intelligence Partnership with Alibaba – The Information, May 17, 2025
China’s next-gen surveillance tools get AI boost to target Telegram and VPN users – SCMP, May 17, 2025
Wuhan’s AI Development: China’s Alternative Springboard to Artificial General Intelligence (AGI) – CSET, May 15, 2025
Microsoft’s CEO on How AI Will Remake Every Company, Including His – Bloomberg, May 15, 2025
How AI Has Already Changed My Job – Bloomberg, May 14, 2025
Telecommunications Networks and Infrastructure
OpenAI, Oracle to Help UAE Develop Massive Data Center – Bloomberg, May 17, 2025
Why Are There So Many ‘Alternative Devices’ All of a Sudden? – The Atlantic, May 17, 2025
China Tightens Control Over AI Data Centers – The Information, May 15, 2025
The Trump Administration Leaned on African Countries. The Goal: Get Business for Elon Musk. – ProPublica, May 15, 2025
What Huawei’s Comeback Says About US-China Tech War – Bloomberg, May 14, 2025
Chinese Manufacturers Have Been Turning to TikTok Diplomacy – NYTs, May 14, 2025
Critical Minerals
China to Crack Down on Rare-Earth Materials Ahead of U.S. Trade Talks – WSJ, May 9, 2025
Ford warns of industry vulnerability to China rare-earth restrictions – Nikkei Asia, May 6, 2025
Synthetic Biology
Europe’s last maker of key antibiotics ingredients shuts biggest domestic factory – FT, May 12, 2025
Quantum
Nvidia in Talks to Invest in Quantum Startup PsiQuantum – The Information, May 18, 2025
Quantum Algorithm Outpaces Classical Solvers in Optimization Tasks, Study Indicates – Quantum Insider, May 17, 2025
EU and Japan Formalize Quantum Collaboration with Letter of Intent and Joint Research Initiative – Quantum Insider, May 14, 2025
Honeywell's Quantinuum, Qatar in $1 Billion Joint Venture – Investors.com, May 14, 2025
Quantum entangled photons on demand – UC Santa Barbara, May 12, 2025
Israeli quantum computing firm Classiq raises $110 million in private funding – Reuters, May 12, 2025
Advanced Aerospace Technology
The top fell off Australia’s first orbital-class rocket, delaying its launch – ArsTechnica, May 15, 2025
How China’s Comac could reshape aviation – FT, May 15, 2025
Mavic 4 Pro official: DJI is skipping the US with its most advanced drone yet – The Verge, May 13, 2025
The Artemis generation: Space diplomacy’s next giant leap – The Interpreter, May 7, 2025
Made in China’ airliner faces trade turbulence – FT, May 6, 2025
Semiconductors and Microelectronics
Japan, Netherlands win as China's chip tool imports surge on US tensions – Nikkei Asia, May 18, 2025
Nvidia to ship new AI chip for China next quarter, modified Blackwell later – Nikkei Asia, May 17, 2025
GlobalWafers Plans Additional $4 Billion Investment in U.S. – WSJ, May 16, 2025
Trump’s new chip policy puts spotlight on Huawei’s secretive Ascend AI chips – SCMP, May 15, 2025
Former Chinese Chip Boss Gets Suspended Death Sentence in Corruption Case – WSJ, May 14, 2025
How China's chip equipment manufacturing sector stacks up – Reuters, May 13, 2025
Energy and Climate
China-made solar parts under scrutiny after Spain-Portugal power cut – Nikkei Asia, May 17, 2025
China and Russia sign nuclear reactor deal to fuel lunar research station – Reuters, May 14, 2025
Rogue communication devices found in Chinese solar power inverters – Reuters, May 14, 2025
Opinion and Commentary
AI Arrives in the Middle East: US Strikes a Deal with UAE and KSA – SemiAnalysis, May 16, 2025
ChatGPT Blows Mapmaking 101: A Comedy of Errors – Gary Marcus, Marcus on AI, May 12, 2025
Stop Giving Beijing Advantage Through TikTok – Michael Sobolik, Hudson Institute, May 9, 2025
Xi's AI message to the Politburo, analyzed – DigiChina, May 5, 2025
Globalization Is Collapsing. Brace Yourselves. – Tara Zahra, NYTs, April 5, 2025
The Last Word
“I have a growing sense that everything I have learned over the last 30 years has led me to this moment.”
– Jony Ive, former Apple designer, after the announcement of OpenAI’s acquisition of io, his AI device startup.
About: Tech Diplomacy Now
The Krach Institute for Tech Diplomacy at Purdue is the world’s preeminent trusted technology accelerator. As the leader of the new category of Tech Diplomacy, the Institute integrates technology expertise, Silicon Valley strategies, and foreign policy tools to build the Global Trusted Tech Network of governments, companies, organizations and individuals to accelerate the innovation and adoption of trusted technology and ensure technology advances freedom.