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Rare earth minerals are essential ingredients for many of the technologies that are important today and will be key in the future. In this episode, we learn about a new global economy being created around rare minerals and how the United States can catch up to the commanding lead that China has established in dominating the mineral dependent industries. Executive Producer: Coffee Infused Nerd Executive Producer: David Dear Please Support Congressional Dish – Quick Links Click here to contribute monthly or a lump sum via PayPal Click here to support Congressional Dish via Patreon (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank's online bill pay function to mail contributions to: 5753 Hwy 85 North, Number 4576, Crestview, FL 32536 Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Recommended Episodes CD215: COVID-19 Testimony, Listen on Spotify CD208: The Brink of the Iran War, Listen on Spotify CD201: WTF is the Federal Reserve? 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Listen on Spotify CD095: Secret International Regulations, Listen on Spotify CD067: What Do We Want In Ukraine?, Listen on Spotify CD003: The Free Market vs. US, Listen on Spotify Bill Outline S. 1317: American Mineral Security Act Text as of July 27, 2020 TITLE I - American Mineral Security Sec. 102: Policy We will analyze supply and demand of minerals to avoid supply shortages, mitigate price volatility, and prepare for demand growth We will map and develop domestic resources of minerals Speed up the permitting process for mineral mining and new mineral manufacturing facilities Invest in workforce training for mineral exploration and development Transfer technology and information in international cooperation agreements Recycle critical minerals Develop alternatives to critical minerals Sec. 104: Resource Assessment Within 4 years of the date the bill is signed into law, a "comprehensive national assessment of each critical mineral" must be completed which identifies known quantities of each mineral using public and private information and an assessment of undiscovered mineral resources in the U.S. The information will be given to the public electronically Sec. 105: Permitting Orders reports to be done on expediting permitting Sec. 107: Recycling, Efficiency, and Alternatives The Secretary of Energy would be required to conduct a research and development program to promote production, use, and recycling of critical minerals and to develop alternatives to critical minerals that are not found in abundance in the United States. Sec. 109: Education and Workforce The Secretary of Labor will be given almost two years to complete an assessment of the Untied States workforce capable of operating a critical minerals management industry Creates a grant program where the Secretary of Labor will give "institutions of higher eduction" money for up to 10 years to create critical minerals management programs, and to help pay for student enrolled in those programs. Sec. 110: National Geological and Geophysical Data Preservation Program Authorizes, but does not appropriate, $5 million per year from 2020-2019 for the program created in 2005 that catalogs geologic and engineering data, maps, logs, and samples. This program was authorized at $30 million from 2006-2010. Sec. 112: Authorization of Appropriations Authorizes, but does not appropriate, $50 million for fiscal years 2020-2019. TITLE II: Rare Earth Element Advanced Coal Technologies Sec. 201: Program for Extraction and Recovery of Rare Earth Elements and Minerals from Coal and Coal Byproducts Requires the Secretary of Energy to create a program for developing "advanced separation technologies" for the extraction and recovery of rare earth elements and minerals from coal. Authorizes, but does not appropriate, $23 million per year for 2020-2027. Articles/Documents Article: Unsanitized: The HEALS Act Emerges By David Dayen, The American Prospect, July 28, 2020 Article: Pompeo's Surreal Speech on China By Ernest Scheyder, The Atlantic, July 25, 2020 Article: Trump wants an 'alliance of democracies' to oppose China. It's starting to take shape By By Shashank Bengali, Los Angeles Times, July 24, 2020 Article: Pentagon resumes rare earths funding program after review By Ernest Scheyder, Reuters, July 21, 2020 Article: Quantitative Easing vs. Currency Manipulation By Matthew Johnston, Investopedia, June 25, 2019 Article: China hands out more grain import quotas to increase purchases - sources by Hallie Gu and Dominique Patton, Reuters, May 13, 2020 Article: Trump's tariffs on China could cost the US in its fight against the coronavirus by Audrey Cher, CNBC, April 13, 2020 Article: Mining the moon: Trump backs new space race by James Marshall, E&E News, April 27, 2020 Article: Trump wants more countries to join US policy approach to space resources, lunar mining by Michael Sheetz, CNBC, April 6, 2020 Article: Executive Order on Encouraging International Support for the Recovery and Use of Space Resources, White House, April 6, 2020 Article: As copper recovery declines, so does the tellurium supply for thin-film solar panels By Kelly Pickerel, Solar Power World, July 3, 2018 Article: Drone video shows blindfolded, handcuffed prisoners in China's Xinjiang Uyghur region By Liselotte Mas, The Observers, September 25, 2019 Article: China footage reveals hundreds of blindfolded and shackled prisoners By Lily Kuo, The Guardian, September 23, 2019 Document: Rare Earth Elements in National Defense: Background, Oversight Issues, and Options for Congress By Valerie Bailey Grasso, Specialist in Defense Acquisition, Congressional Research Service, December 23, 2013 Article: U.S. imposes quotas on some Chinese textiles By Keith Bradsher, The New York Times, Sept. 2, 2005 Additional Resources Bill: H.R.2262 - U.S. Commercial Space Launch Competitiveness Act, Congress.gov, November 25, 2015 Sound Clip Sources Speech: Communist China and the Free World's Future, Michael R. Pompeo, Secretary Of State, Yorba Linda, California, The Richard Nixon Presidential Library and Museum, U.S. Department of State, July 23, 2020 Transcript: 14:00 Mike Pompeo: The Department of Justice and other agencies have vigorously pursued punishment for these crimes….And so our Department of Defense has ramped up its efforts, freedom of navigation operations out and throughout the East and South China Seas, and in the Taiwan Strait as well. And we've created a Space Force to help deter China from aggression on that final frontier. And so too, frankly, we've built out a new set of policies at the State Department dealing with China, pushing President Trump's goals for fairness and reciprocity, to rewrite the imbalances that have grown over decades. 18:35 Mike Pompeo: It's true, there are differences. Unlike the Soviet Union, China is deeply integrated into the global economy. But Beijing is more dependent on us than we are on them. 21:30 Mike Pompeo: The challenge of China demands exertion, energy from democracies – those in Europe, those in Africa, those in South America, and especially those in the Indo-Pacific region. And if we don't act now, ultimately the CCP will erode our freedoms and subvert the rules-based order that our societies have worked so hard to build. 22:20 Mike Pompeo: So we can't face this challenge alone. The United Nations, NATO, the G7 countries, the G20, our combined economic, diplomatic, and military power is surely enough to meet this challenge if we direct it clearly and with great courage. Maybe it's time for a new grouping of like-minded nations, a new alliance of democracies. We have the tools. I know we can do it. Now we need the will. Speech: Attorney General Barr's Remarks on China Policy at the Gerald R. Ford Presidential Museum, U.S. Department of Justice, July 16, 2020 Read Transcript Transcript: 13:50: The People's Republic of China is now engaged in an economic blitzkrieg—an aggressive, orchestrated, whole-of-government (indeed, whole-of-society) campaign to seize the commanding heights of the global economy and to surpass the United States as the world's preeminent technological superpower. 14:15: A centerpiece of this effort is the Communist Party's "Made in China 2025" initiative, a plan for PRC domination of high-tech industries like robotics, advanced information technology, aviation, and electric vehicles, and many other technologies . Backed by hundreds of billions of dollars in subsidies, this initiative poses a real threat to U.S. technological leadership. 15:20 "Made in China 2025" is the latest iteration of the PRC's state-led, mercantilist economic model. For American companies in the global marketplace, free and fair competition with China has long been a fantasy. To tilt the playing field to its advantage, China's communist government has perfected a wide array of predatory and often unlawful tactics: currency manipulation, tariffs, quotas, state-led strategic investment and acquisitions, theft and forced transfer of intellectual property, state subsidies, dumping, cyberattacks, and industrial espionage. 16:30: The PRC also seeks to dominate key trade routes and infrastructure in Eurasia, Africa, and the Pacific. In the South China Sea, for example, through which about one-third of the world's maritime trade passes, the PRC has asserted expansive and historically dubious claims to nearly the entire waterway, flouted the rulings of international courts, built artificial islands and placed military outposts on them, and harassed its neighbors' ships and fishing boats. 17:00: Another ambitious project to spread its power and influence is the PRC's "Belt and Road" infrastructure initiative. Although billed as "foreign aid," in fact these investments appear designed to serve the PRC's strategic interests and domestic economic needs. For example, the PRC has been criticized for loading poor countries up with debt, refusing to renegotiate terms, and then taking control of the infrastructure itself, as it did with the Sri Lankan port of Hambantota in 2017. This is little more than a form of modern-day colonialism. 19:20: The PRC's drive for technological supremacy is complemented by its plan to monopolize rare earth materials, which play a vital role in industries such as consumer electronics, electric vehicles, medical devices, and military hardware. According to the Congressional Research Service, from the 1960s to the 1980s, the United States led the world in rare earth production.[6] "Since then, production has shifted almost entirely to China," in large part due to lower labor costs and lighter environmental regulation. The United States is now dangerously dependent on the PRC for these materials. Overall, China is America's top supplier, accounting for about 80 percent of our imports. The risks of dependence are real. In 2010, for example, Beijing cut exports of rare earth materials to Japan after an incident involving disputed islands in the East China Sea. The PRC could do the same to us. 41:00: In a globalized world, American corporations and universities alike may view themselves as global citizens, rather than American institutions. But they should remember that what allowed them to succeed in the first place was the American free enterprise system, the rule of law, and the security afforded by America's economic, technological, and military strength. Globalization does not always point in the direction of greater freedom. A world marching to the beat of Communist China's drums will not be a hospitable one for institutions that depend on free markets, free trade, or the free exchange of ideas. There was a time American companies understood that. They saw themselves as American and proudly defended American values. Hearing: U.S.-China Relations and its Impact on National Security and Intelligence in a Post-COVID World, U.S. House Permanent Select Committee on Intelligence, July 1, 2020 Read Transcript Witnesess: Dr. Tanvi Madan – Senior Fellow, Foreign Policy, The Brookings Institution Dr. Evan Medeiros – Penner Family Chair in Asian Studies and Cling Family Distinguished Fellow, School of Foreign Service, Georgetown University Mr. Orville Schell – Arthur Ross Director, Center on US-China Relations, Asia Society Ms. Meredith Sumpter – Head of Research Strategy and Operations, Eurasia Group Transcript: 21:15 Mr. Orville Schell: We were accustomed for many, many decades. And I've written this along. piece that's in the in the record, I think is my testimony. But engagement was the kind of center of how we related to China. And what were the presumptions of that? Well, the presumption was that this began in 1972, with Kissinger and Nixon going to China, that if we simply engage China across the board, that slowly, we would have a greater likelihood of more convergence rather than divergence that we would slowly morph out of the Cold War. And what is so extraordinary about the policy of engagement and I'm not one of the people who believes it was an erroneous policy. I do, however, believe it is a failed policy. But it was not erroneous, precisely because for eight presidential administrations United States government sought, and I think this is the height of leadership, to slowly bend the metal of China, to help China in to assist China, to morph out of its Maoist revolutionary period into something that was more soluble and convergent with the world as it existed outside, of the marketplace, international order, etc, etc. And I think if you look at all of these different administrations and go through them one by one, as I've done in the piece that's in your record, it is so striking to see how one president, Republican and Democrat came in after another, usually with a rather jaundiced view of China. Ultimately, they embraced the notion that we should try to engage China. So what happened? Well, I think just to cut to the chase here, what happened was that we have a regime in China now that's very different in its set of presumptions than that pathway that was laid out by Deng Xiaoping in 1978-79 of reform and opening. Without reform, without the presumption that China will both reform economically and politically to some degree, engagement has no basis. Because if you're not converging, then you're diverging. And if China actually is not trying to slowly evolve out of its own old Leninist, Maoist mold, sort of form of government, then it is in a sense, deciding that that is what it is and that is what its model is and that is what it's going to be projecting around the world. 55:45 Ms. Meredith Sumpter: Beijing decision makers believe that their state directed economic system is the foundation of the livelihood of their political system. In other words, we have been spending our energies trying to force China to change and China is not willing to change an economic model that it believes underpins its political longevity. 56:15 Ms. Meredith Sumpter: There are limits to how much we can force China to not be China. And China is w…
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