The Chinese Communist Party (CCP) has officially shown its hand.
Mandiant, a U.S. cybersecurity firm, recently uncovered a shockingly desperate cyberattack against a single private company.
A series of fake social media profiles, typically called “bots,” made some bizarre posts. According to Mandiant’s report, these posts all came from within CCP-friendly IP addresses.
Hilariously pseudo-American names like “Cox Teri” were being used to stir up controversy over a U.S. industry that is currently threatening China’s dominance.
Here’s what Mr. Teri had to say about the situation in question:
My friends and I have been resisting the construction of a rare earth processing plant in Texas by Lynas. If nothing is done, Lynas’s waste discharge will directly or indirectly affect the health of local residents, and this pollution is irreversible.
Either these authentic Chinese citizens are remarkably concerned about the relatively tiny Australian-owned Lynas Rare Earths, or these are just poorly made bots.
Mandiant reported that multiple accounts were made at the same time, further confirming their suspicions.
It’s the type of cyberattack we’d expect from an irate Twitter user or immoral private company. It almost seems beneath China somehow.
But like I said, this attack reveals desperation. China is genuinely concerned that the U.S. could steal away its rare earth dominance.
Even if these attacks weren’t an utter failure, they're a major bullish signal for the industry they're being aimed at.
Looking for America’s Next Major Growth Industry?
This embarrassing bot screw-up is coming at a time when President Xi is being forced to watch his hard-earned global monopoly decline before his eyes.
A decade ago, China controlled 90% of all rare earth mining and processing. Today, that number has shrunk to less than 60%.
Still, China maintains its dominance by using its tried-and-true strategy: Undercut the competition by any means necessary. In reality, that usually means abysmal working conditions and nonexistent safety regulations.
For decades, that system worked fine for the world. Businesses loved the high margins and consumers loved the cheap products. But China couldn't help but abuse its power.
Control of the global economy was as close to world domination as China could get. Xi used his control to lock a huge part of the world into a one-sided economy.
Not only was that a political nightmare, it was an unstable economic order. COVID and Russia proved that beyond a reasonable doubt. Like an immune response to a virus, the world is rejecting China’s control.
In the U.S., that means developing the country’s massive yet neglected natural resources. It also means rebuilding the manufacturing sector that has been slowly sold piecemeal to China these past few decades.
It’s what companies like Lynas Rare Earths are trying to do, and why they're being targeted so heavily from attackers half a world away. The U.S. has more than enough rare earth reserves to dethrone China, as do many other countries.
Biden has been spending like there’s no tomorrow on industries like this, inflation be damned. He knows that rare earth metals aren’t just some niche materials for a tiny corner of the tech sector.
Rare earth metals are set to become some of the most important resources of the next decade.
Who’s Actually Pulling Them Out of the Ground?
As of this moment, only one fully operational rare earth mine exists in the U.S. The Mountain Pass mine in California, owned by MP Materials, already produces an impressive 16% of the total global supply.
It takes a long time to inspect, approve, and construct a mine. Red tape can even kill the project before it starts.
But times are changing.
The pressure to build up U.S. industries is stronger than ever. Trillions of dollars in funding plus a new wave of private investment are coming to take rare earth mining to the next level.
Now if only these crucial mines could get the same expedited approval process as the COVID vaccine…
Oh, wait, they absolutely can. Ford is already petitioning the government to do the same with lithium.
Biden hasn't exactly been a friend of mining during his presidency, but he’s more than happy to hand off money for an industry this important. Expediting regulations is well within his power, should he choose to use it.
When this money is officially doled out, it’s not going to just anyone. The application process weeds out companies that aren't equipped to get the most out of every dollar.
Figuring out which lucky winner is getting a piece of Biden’s trillion-dollar handout takes our team of analysts weeks to figure out, but the payoff is so worth it.
In the rare earth sector, we’ve narrowed down the most likely recipient of a major funding package. This small-cap team are renowned experts in the field, with years of experience in refining raw rare earth metals — arguably the most difficult process in the industry.
I absolutely recommend reading through this detailed guide before making any major investment decisions. It’s an entire industry’s worth of knowledge compressed into a clean, concise presentation.
Don’t blindly stumble into an industry this important. Get your copy of our “Imperial Metals” road map for free here.
