Jake Sanders, Editor
Taiwan plans to collaborate with the US and Japan on a proposed initiative to address China’s recent restrictions on rare earth exports, according to Minister of Economic Affairs Kung Ming-hsin. China announced new rules last week requiring export licenses for products containing over 0.1% Chinese-origin rare earths by value.
In response, US Treasury Secretary Scott Bessent criticized Beijing’s export practices, labeling China as “unreliable” in this sector and asserting that the US will not be controlled by China over these resources. Similarly, Japanese Finance Minister Katsunobu Kato expressed concern and stressed the need for coordinated action among G7 nations.
While China’s restrictions are unlikely to severely impact Taiwan directly, since Taiwan neither mines nor refines rare earths but imports most from Japan and the US, the island is prepared to support efforts to stabilize its supply chain. Taiwan is also considering aiding manufacturers in processing rare earths from electronic waste.
Ahead of China’s measures, Taiwan was already planning to accelerate a circular economy initiative with the Ministry of Environment, aiming to fulfill one-third of domestic demand—about 1,500 tons annually—by 2030 instead of 2028. The plan involves scaling up laboratory technology developed by the Industrial Technology Research Institute and transferring it to local companies, with some manufacturers already showing interest.
Additionally, Taiwan is exploring establishing high-tech parks abroad. During a visit to a potential site in Clark, Philippines, officials from industry groups expressed willingness to set up a park there, citing its proximity and favorable environment. The Taiwanese industry is also moving forward with plans to establish parks in Mexico, and discussions are ongoing for locations in the US, with Arizona being a candidate primarily for chip manufacturing.
