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August 6, 2020 Source:  Keith Krach

China Challenge Testimony

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Senate Testimony: The China Challenge — In the US, rare earth minerals aren’t that rare.

Under Secretary of State, Keith Krach, testifies before the U.S. Senate Subcommittee on Security. According to Krach, "In the United States, rare earth minerals aren’t that rare. But what the Chinese have done is they put our processing plants out of business by subsidized pricing. Their aim is not just to compete. Their aim is to drive you out of business."

"Then they can do two things. They can jack up prices and feed that ‘China-inc. kitty’ where they’re going off and doing it to the next sector. Or also — and they’re very good at this — it’s a strategic pinch point, underlying everything and they’ve studied it."

"One thing I must say, it’s been great to see in this administration is the work being done at Commerce, what we’re doing at State, and the NSC, in terms of really analyzing the strategic pinch points in the supply chain."

"I don’t know if it was ever done before. And then you have to get to a level of specificity where it’s like, what’s the plant? What’s the company? What’s the product? And how do we get them over here? Or how do we get them in our allies hands? Ideally, it’s in the United States. And you really have to really, really dig in."