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The world wants China's rare earth elements – what is life like in the city that produces them?
The world wants China's rare earth elements – what is life like in the city that produces them?

The Guardian

time7 hours ago

  • Business
  • The Guardian

The world wants China's rare earth elements – what is life like in the city that produces them?

Central Baotou, an industrial hub of 2.7 million people that abuts the Gobi desert in north China, feels just like any other second-tier Chinese city. Large shopping malls featuring western chains including Starbucks and KFC stand alongside street after street of busy local restaurants, where people sit outside and children play late into the evening, enjoying the relative relief of the cooler temperatures that arrive after dark in Inner Mongolia's baking summer. But a short drive into the city's suburbs reveal another typical, less hospitable, Chinese scene. Factories crowd the city's edges, with chimneys belching white plumes of smoke. As well as steel and silicon plants, Baotou is home to China's monopoly on rare earths, the metallic elements that are used in oil refining equipment and car batteries and that have become a major sticking point in the US-China trade war. More than 80% of China's rare earth reserves are in Baotou. Metals such as cerium and lanthanum are crucial for modern technologies ranging from smartphone screens to vehicle braking systems. Certain rare earths, such as samarium, are used in military-grade magnets, including by the US. That has made them a useful bargaining chip for Beijing in the trade war. China has long objected to Washington's embargo on the export of advanced semiconductors to China, and now appears to be returning in kind by cutting off western manufacturers from critical elements in their supply chain. In April, Beijing restricted the export of several rare earths, before agreeing to reinstate export licences for some of them after recent talks in London. The restrictions have already had global effects, with Ford temporarily closing a car factory in Chicago because of the shortage. On Monday, a Ford executive said the company was living 'hand to mouth' to keep its factories open. In a fiery speech last week, the president of the European commission, Ursula von der Leyen, accused China of 'weaponising' its dominance of the rare earths supply chain. Access to the commodities is reportedly top of the agenda for an upcoming EU-China summit. Rare earths have been central to life in Baotou since long before the region's geology made global headlines. The metals were first discovered in China in Bayan Obo, a mining district 150km north of Baotou, in the 1930s. But production did not ramp up until the 1990s, when China entered a period of rapid economic reform and opening up. Between 1990 and 2000, China's production increased by 450% to 73,000 metric tonnes. At the same time, production in other countries, namely the US, declined, giving China a near monopoly on the global supply. In 2024, the government's quota for rare earths production was 270,000 tonnes. The Bayan Obo mining district is now a closely guarded community of people living in the shadow of massive mines and their toxic waste products. Baotou's rich reserves of natural resources have been good for the economy. The city's GDP per capita is 165,000 yuan (£17,000), compared with the national average of 95,700 yuan, although locals grumble about an economic slowdown, which is affecting the whole country. According to state media, last year the industry generated more than 100bn yuan for the city for the first time. But the industry also has an environmental impact. Toxic, often radioactive byproducts of rare earths processing are dumped into man-made ditches known as 'tailings ponds'. One of the most notorious tailings ponds in the area is the Weikuang tailings dam, owned by the state-owned Baogang Group. For many years it was the world's biggest dumping ground for rare earths waste products. It was not properly lined and there were fears about its toxic contents seeping into the groundwater and towards the nearby Yellow River, a major source of drinking water for northern China. According to the Ministry for Ecology and Environment, a clean-up project of one of the Yellow River's tributaries in Baotou resulted in levels of ammonia nitrogen, a rare earths processing byproduct, decreasing by 87% between 2020 and 2024. In the 2000s and 2010s, investigations into the villages around Baotou revealed orthopaedic problems, birth defects and an 'epidemic' of cancer. Because microscopic rare earth elements can cross the blood-brain barrier and deposit in the brain, exposure has been linked to a number of neurological problems such as motor and sensory disabilities, and they can also affect the neurological development of foetuses in pregnant women. A study published in 2020 found that children in Baotou were particularly likely to be exposed to rare earth elements through road dust, something that the researchers described as a 'serious risk'. Another study found that the daily intake of airborne rare earths elements in mining areas was up to 6.7mg, well above the 4.2 mg level that is considered to be relatively safe. 'Large-scale extraction quite often proceeds at the expense of the health and well-being of surrounding communities, pretty much regardless of the context,' says Julie Klinger, an associate professor at the University Delaware who specialises in rare earths. Although the technologies to process rare earths in less environmentally harmful ways exist in theory, they are rarely used because of cost. 'I doubt they could maintain their production costs if they took such steps,' says Craig Hart, a lecturer at John Hopkins University who focuses on rare earths. Environmentalists note that part of the reason that China has been able to dominate global supplies of rare earths at competitive prices is because, as well as being rich in natural resources, it has also been willing to let poor, rural people bear the brunt of the toxic, dirty work. But now China wants to clean up its image. In 2022, state media announced that Baotou's major tailings pond had been transformed into an urban wetland. Birdwatchers could come and enjoy the pristine waters of the newly purified pond, which apparently attracted a range of migratory birds. When the Guardian visited the site of the new birders paradise, however, most of the site was blocked from view behind a newly built concrete wall. A peek over the wall revealed an expanse of arid mud. Around the area the demolished remains of the once notorious 'cancer villages' were scattered among rusting pipes and dilapidated warehouses. One overgrown, abandoned dumpling restaurant was the only evidence of the communities that used to live there. At the site of another village once cited locally as having particularly high cancer rates, a large silicon factory occupied the area. It's not clear where the residents have been moved to. A nearby, newly built complex of multi-storey apartment buildings appeared to be intended as housing for the relocated villagers, but few people roamed the streets. Local officials physically blocked the Guardian from speaking to any residents around the villages. Baotou's local government did not respond to a request for comment.

The world wants China's rare earth elements – what is life like in the city that produces them?
The world wants China's rare earth elements – what is life like in the city that produces them?

The Guardian

time12 hours ago

  • Business
  • The Guardian

The world wants China's rare earth elements – what is life like in the city that produces them?

Central Baotou, an industrial hub of 2.7 million people that abuts the Gobi desert in north China, feels just like any other second-tier Chinese city. Large shopping malls featuring western chains including Starbucks and KFC stand alongside street after street of busy local restaurants, where people sit outside and children play late into the evening, enjoying the relative relief of the cooler temperatures that arrive after dark in Inner Mongolia's baking summer. But a short drive into the city's suburbs reveal another typical, less hospitable, Chinese scene. Factories crowd the city's edges, with chimneys belching white plumes of smoke. As well as steel and silicon plants, Baotou is home to China's monopoly on rare earths, the metallic elements that are used in oil refining equipment and car batteries and that have become a major sticking point in the US-China trade war. More than 80% of China's rare earth reserves are in Baotou. Metals such as cerium and lanthanum are crucial for modern technologies ranging from smartphone screens to vehicle braking systems. Certain rare earths, such as samarium, are used in military-grade magnets, including by the US. That has made them a useful bargaining chip for Beijing in the trade war. China has long objected to Washington's embargo on the export of advanced semiconductors to China, and now appears to be returning in kind by cutting off western manufacturers from critical elements in their supply chain. In April, Beijing restricted the export of several rare earths, before agreeing to reinstate export licences for some of them after recent talks in London. The restrictions have already had global effects, with Ford temporarily closing a car factory in Chicago because of the shortage. On Monday, a Ford executive said the company was living 'hand to mouth' to keep its factories open. In a fiery speech last week, the president of the European commission, Ursula von der Leyen, accused China of 'weaponising' its dominance of the rare earths supply chain. Access to the commodities is reportedly top of the agenda for an upcoming EU-China summit. Rare earths have been central to life in Baotou since long before the region's geology made global headlines. The metals were first discovered in China in Bayan Obo, a mining district 150km north of Baotou, in the 1930s. But production did not ramp up until the 1990s, when China entered a period of rapid economic reform and opening up. Between 1990 and 2000, China's production increased by 450% to 73,000 metric tonnes. At the same time, production in other countries, namely the US, declined, giving China a near monopoly on the global supply. In 2024, the government's quota for rare earths production was 270,000 tonnes. The Bayan Obo mining district is now a closely guarded community of people living in the shadow of massive mines and their toxic waste products. Baotou's rich reserves of natural resources have been good for the economy. The city's GDP per capita is 165,000 yuan (£17,000), compared with the national average of 95,700 yuan, although locals grumble about an economic slowdown, which is affecting the whole country. According to state media, last year the industry generated more than 100bn yuan for the city for the first time. But the industry also has an environmental impact. Toxic, often radioactive byproducts of rare earths processing are dumped into man-made ditches known as 'tailings ponds'. One of the most notorious tailings ponds in the area is the Weikuang tailings dam, owned by the state-owned Baogang Group. For many years it was the world's biggest dumping ground for rare earths waste products. It was not properly lined and there were fears about its toxic contents seeping into the groundwater and towards the nearby Yellow River, a major source of drinking water for northern China. According to the Ministry for Ecology and Environment, a clean-up project of one of the Yellow River's tributaries in Baotou resulted in levels of ammonia nitrogen, a rare earths processing byproduct, decreasing by 87% between 2020 and 2024. In the 2000s and 2010s, investigations into the villages around Baotou revealed orthopaedic problems, birth defects and an 'epidemic' of cancer. Because microscopic rare earth elements can cross the blood-brain barrier and deposit in the brain, exposure has been linked to a number of neurological problems such as motor and sensory disabilities, and they can also affect the neurological development of foetuses in pregnant women. A study published in 2020 found that children in Baotou were particularly likely to be exposed to rare earth elements through road dust, something that the researchers described as a 'serious risk'. Another study found that the daily intake of airborne rare earths elements in mining areas was up to 6.7mg, well above the 4.2 mg level that is considered to be relatively safe. 'Large-scale extraction quite often proceeds at the expense of the health and well-being of surrounding communities, pretty much regardless of the context,' says Julie Klinger, an associate professor at the University Delaware who specialises in rare earths. Although the technologies to process rare earths in less environmentally harmful ways exist in theory, they are rarely used because of cost. 'I doubt they could maintain their production costs if they took such steps,' says Craig Hart, a lecturer at John Hopkins University who focuses on rare earths. Environmentalists note that part of the reason that China has been able to dominate global supplies of rare earths at competitive prices is because, as well as being rich in natural resources, it has also been willing to let poor, rural people bear the brunt of the toxic, dirty work. But now China wants to clean up its image. In 2022, state media announced that Baotou's major tailings pond had been transformed into an urban wetland. Birdwatchers could come and enjoy the pristine waters of the newly purified pond, which apparently attracted a range of migratory birds. When the Guardian visited the site of the new birders paradise, however, most of the site was blocked from view behind a newly built concrete wall. A peek over the wall revealed an expanse of arid mud. Around the area the demolished remains of the once notorious 'cancer villages' were scattered among rusting pipes and dilapidated warehouses. One overgrown, abandoned dumpling restaurant was the only evidence of the communities that used to live there. At the site of another village once cited locally as having particularly high cancer rates, a large silicon factory occupied the area. It's not clear where the residents have been moved to. A nearby, newly built complex of multi-storey apartment buildings appeared to be intended as housing for the relocated villagers, but few people roamed the streets. Local officials physically blocked the Guardian from speaking to any residents around the villages. Baotou's local government did not respond to a request for comment.

Chinese Warship Shows Up Amid Rising US-Iran Threat of War
Chinese Warship Shows Up Amid Rising US-Iran Threat of War

Newsweek

time07-05-2025

  • Business
  • Newsweek

Chinese Warship Shows Up Amid Rising US-Iran Threat of War

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. China dispatched a warship to the Persian Gulf for a visit as tensions between Iran, Beijing's strategic partner, and the United States continue to grow over the nuclear program of Tehran. The Chinese naval port call in the United Arab Emirates, a vital U.S. security partner, comes ahead of President Donald Trump's scheduled visit to the Gulf country next week, where the Middle East is his administration's focus on diplomacy and regional security cooperation. Newsweek has reached out to the White House for comment by email. The Chinese Defense Ministry did not immediately respond to a Newsweek written request for further comment. On March 11, 2025, the Chinese destroyer CNS "Baotou" sails during joint military drills between Iran, Russia, and China in the Gulf of Oman. On March 11, 2025, the Chinese destroyer CNS "Baotou" sails during joint military drills between Iran, Russia, and China in the Gulf of Oman. Iranian Army office/AFP via Getty Images Why It Matters China deployed the 47th naval escort task force, consisting of the destroyer CNS Baotou, the frigate CNS Honghe, and the supply ship CNS Gaoyouhu, to the Gulf of Aden in December last year. This came as the nearby Red Sea was attacked by the Iran-backed Houthi rebels. Beijing and Tehran have formed what they called a "comprehensive strategic partnership" to promote cooperation in military and other fields. China, which is a key buyer of Iranian oil, was recently targeted by U.S. sanctions as its private refiner purchased crude oil from Iran. While Trump halted the bombings in Yemen unexpectedly, he continues to threaten Iran with the use of force unless a nuclear deal is reached. The Pentagon has also increased its military deployment near Iran, including the presence of two aircraft-carrier strike groups. The Baotou (Hull 133), a new-generation guided-missile destroyer of the 47th Chinese naval escort task force, made a port call in #AbuDhabi, #UAE, on Sunday for a five-day replenishment and maintenance period. It is a Type 052DL destroyer, measuring 159 meters in length, with a… — China Daily (@ChinaDaily) May 4, 2025 What To Know The Baotou, which is a Type 052DL destroyer, on Sunday arrived in Abu Dhabi for a five-day "replenishment and maintenance period" in the capital city of the United Arab Emirates, according to a post on X, formerly Twitter, by the Chinese state-run newspaper China Daily. A Chinese chamber of commerce based in the Gulf country claimed that the destroyer has what it called "powerful antiaircraft, anti-ship, and anti-submarine comprehensive combat capabilities," making the 7,000-ton warship an "all-around warrior guarding the sea frontier." Meanwhile, the rest of the naval escort task force, the Honghe and Gaoyouhu, was spotted in the Arabian Sea on Sunday, said open-source intelligence researcher @MT_Anderson on X. They were operating less than 60 miles from the American aircraft carrier USS Carl Vinson. The Honghe and Gaoyouhu conducted a "multi-subject training" in the Gulf of Aden, which links the Red Sea with the Arabian Sea, in early April. The Baotou executed an escort mission for a sailing boat that departed from China in the region, the Chinese military said. 🇨🇳47th Escort Task Force🇨🇳 Spotted on 4 May 2025, 1x Type 54A & 1x Type 903 Replenishment vessel transiting the Arabian Sea — MT Anderson (@MT_Anderson) May 5, 2025 The Chinese naval escort task force has helped Beijing in expanding its military reach and presence. The previous 46th task force was deployed for 339 days, which saw the vessels perform escort missions, as well as port visits and exercises, in Asia, Africa, and Europe. The Baotou's visit comes after a Pentagon assessment report, which said China is very likely considering and planning for additional military facilities in a number of countries, including the United Arab Emirates, located near the Strait of Hormuz, to support its force projection. What People Are Saying Senior Colonel Zhang Xiaogang, spokesperson for the Chinese Defense Ministry, said: "The [People's Liberation Army Navy] task groups conduct routine escort operations in the Gulf of Aden and waters off Somalia. The recent deployment has nothing to do with the current situation in the [Red Sea] region. China will continue to act on the Global Security Initiative, safeguard international sea lanes and provide reliable escort to Chinese and foreign ships." The Pentagon's Chinese military power assessment report read: "This naval [escort] activity demonstrates the [People's Liberation Army Navy]'s increasing familiarity with the area, hones its ability to operate in far seas, and enables the [People's Liberation Army Navy] to advance military diplomacy efforts by conducting port calls in Africa and the Middle East." What Happens Next It remains to be seen whether the current Chinese naval escort task force will conduct any exercises or port visits beyond its assigned operating area in the Gulf of Aden in the future.

China, Iran and Russia to hold 'Security Belt' military exercise in Indian Ocean
China, Iran and Russia to hold 'Security Belt' military exercise in Indian Ocean

Yahoo

time09-03-2025

  • Politics
  • Yahoo

China, Iran and Russia to hold 'Security Belt' military exercise in Indian Ocean

March 9 (UPI) -- Iran, China and Russia will launch a joint military operation Monday called "Security Belt 2025," designed to promote security and trilateral cooperation in the Indian Ocean. "The aim is to strengthen military mutual trust and foster pragmatic cooperation among the naval forces of the participating countries," the Chinese defense ministry said in a statement. It's the 7th "Security Belt" exercise, and will include drills that focus on striking maritime targets, damage control, as well as joint search and rescue, according to the Chinese news agency Xinhua. China is scheduled to dispatch the Baotou, its most powerful guided missile destroyer to participate in the exercise. This year's exercise is scheduled to take place in the Iranian port of Chabahar on the Gulf of Oman coast. Officials from the Azerbaijan Republic, South Africa, Oman, Kazakhstan, Pakistan, Qatar, Iraq, the UAE, and Sri Lanka will monitor the exercise, Iranian state media reported. Last year's exercises included the armed rescue of hijacked merchant vessels and firing on targets at sea, the Chinese ministry reported.

China set for joint naval exercise Security Belt-2025 with Russia and Iran
China set for joint naval exercise Security Belt-2025 with Russia and Iran

South China Morning Post

time09-03-2025

  • Politics
  • South China Morning Post

China set for joint naval exercise Security Belt-2025 with Russia and Iran

China will hold joint naval exercises with Russia and Iran in the Indian Ocean this month, the Chinese defence ministry said on Sunday. Advertisement The ministry said the 'Security Belt-2025' joint exercise would be held near the Iranian port of Chabahar on the coast of the Gulf of Oman with the aim of deepening 'military trust and pragmatic cooperation'. The exercise will include simulated attacks on maritime targets, joint search and rescue drills, and spot checks and arrests. China will send the Type 052D guided-missile destroyer Baotou and supply ship Gaoyouhu from the 47th naval escort task force to take part in the exercise. The full task force, which also includes the guided-missile frigate Honghe and two ship-borne helicopters, has been patrolling in the nearby Gulf of Aden since December. Advertisement Last year's exercise was held between March 11 to 15 and focused on anti-piracy and search and rescue drills. Exercises included the armed rescue of hijacked merchant vessels and firing on targets at sea, according to the defence ministry.

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