Name: Aiming to thwart China, U.S. senator pushes rare earths funding bill
Brand: reuters.com
SKU: reuters-com-1038
Availability: OnlineOnly

critic

Aiming to thwart China, U.S. senator pushes rare earths funding bill

preview

By (Reuters) - U.S. Senator Ted Cruz introduced legislation on Tuesday to help revive the U.S. rare earths industry with tax breaks for mine developers and manufacturers who buy their products, the latest attempt by Washington to break China’s control over the strategic sector.China is the largest global processor of rare earths, a group of 17 minerals used to make electronics and military equipment. The country has threatened to stop exporting the specialized minerals to the United States amid the ongoing trade war, prompting efforts by Washington to help revive its domestic rare earths industry.Cruz’s legislation, if approved, would let mining companies deduct from their tax bill the costs of building rare earths mines, processing facilities and equipment purchases.It would also let electronics manufacturers deduct 200 percent of the cost of U.S. rare earth products, including magnets, a measure designed to entice companies to buy fewer of the strategic minerals from China and more from the United States.“I believe China is the most significant geopolitical threat to the United States for the next century,” Cruz, a Texas Republican, said in a statement.The bill would also require the Pentagon to use U.S.-derived rare earth products in all weaponry.Similar bills from other senators have yet to pass, though elements from them all could eventually be folded into broader U.S. military funding legislation, congressional staffers have said.Reuters reported last month that a Chinese company’s minority stake in the only U.S. rare earths mine has prompted concerns from scientists at the U.S. Department of Energy. The U.S. Department of Defense decided to fund the mine’s owner, MP Materials in April.Two days after the Reuters report, Cruz and five other senators sent a letter to the Pentagon pushing it to only fund U.S. rare earth projects.Cruz’s legislation introduced on Tuesday also would provide $50 million in grants for rare earth pilot projects, with roughly a third allocated for minerals recycling from old mine waste, among other sources.Alaska, Wyoming and California also contain large concentrations of rare earths.Reporting by Ernest Scheyder; Editing by Aurora EllisOur Standards:

By (Reuters) - U.S. Senator Ted Cruz introduced legislation on Tuesday to help revive the U.S. rare earths industry with tax breaks for mine developers and manufacturers who buy their products, the latest attempt by Washington to break China’s control over the strategic sector.China is the largest global processor of rare earths, a group of 17 minerals used to make electronics and military equipment. The country has threatened to stop exporting the specialized minerals to the United States amid the ongoing trade war, prompting efforts by Washington to help revive its domestic rare earths...

public

Ernest Scheyder

Top and breaking news, pictures and videos from Reuters. For more breaking business news, follow @ReutersBiz.

reuters.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Aiming to thwart China, U.S. senator pushes rare earths funding bill

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS