Good morning, and welcome to the Global Situation Report for Thursday, 15 August 2024.
- CHINESE ANTIMONY EXPORT CONTROLS TO ADD TO INFLATION: China’s Ministry of Commerce (MOFCOM) announced new export controls on antimony will begin on 15 September. The MOFCOM said any exporters would need to apply for a license and that the government opposes any country using items from China “to engage in activities that undermine China’s national sovereignty, security, and development interests.”
- China frequently accuses the U.S. of “activities that undermine China’s national sovereignty, security, and development interests.”
- China made up 63% of the total antimony imports from 2018-21, and the U.S. had no domestic production in 2022, according to the most recent data from the U.S. Geological Survey (USGS).
- The USGS domestic use breakdown is as follows:
- flame retardants, 40%
- metal products, including antimonial lead and ammunition, 36%
- and nonmetal products, including ceramics, glass, and rubber products, 24%
Why It Matters: This is a continuation of economic warfare against the United States, and likely its allies that will drive up the cost of the goods listed but things like lead-acid batteries commonly used in cars. China is most likely to use this incrementally to increase prices and potentially cease exports if they believe the U.S. is about to go to war with China. – J.V.
- Global Rollup
- Anduril’s Australia division announced it will open a new manufacturing facility for the Ghost Shark Extra Large-Autonomous Underwater Vehicles (XL-AUVs) for the Royal Australian Navy. The company also announced contracts with 42 Australian companies involved in producing the AUVs to domesticate supply chains. (This move will significantly expand Australia’s undersea warfare capabilities beyond its six aging submarines. Australia also provides security to several Pacific Island nations, so this could open diplomatic routes for the most trusted Pacific allies to buy AUVs, solidifying the allied presence in the second island chain. – J.V.)
- New Zealand’s Prime Minister Christopher Luxon announced this morning that New Zealand could no longer depend on “splendid isolation” and would shift away from China to its longstanding partners in the U.S., U.K., and Australia. Luxon ordered a defense review to replace and upgrade New Zealand’s military capabilities.
- The German and British governments announced there are no legal issues with Ukraine using most of their donated weapons inside Russia. Britain’s Storm Shadow missiles remain restricted from use in Russia’s recognized borders.
- Ukrainian President Volodymyr Zelensky reportedly told U.S. Senators Richard Blumenthal and Lindsey Graham earlier this week that Ukraine was starting an initiative to hire retired NATO F-16 pilots to fly the aircraft it just received.
THAT’S A WRAP: This does it for today’s edition. Thank you for reading. If you know folks who would also like to receive this email, would you please forward it to them? We appreciate you spreading the word. – M.S.