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China’s rare earth tech obsession ensnares US resident as CCP looks to maintain stranglehold
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China’s bid to strangle the world’s supply of heavy rare-earth elements was about to hit a wall. Vietnamese entrepreneur Luu Anh Tuan had lined up U.S. backing for a technology that could break Beijing’s chokehold on the critical minerals behind everything from smartphones to missile-guidance systems.
Tuan and his family had fled Vietnam for the U.S. to escape Beijing’s tightening grip over Hanoi, where the Chinese Communist Party exerts a heavy influence on domestic governance.
In July 2023, he signed a technology transfer agreement, seen by Fox News Digital, to bring the heavy rare earth separation technology he was using at his Vietnam-based company, Vietnam Rare Earth (VTRE) to VTRU Corporation, a company registered in Nevada. VTRE had also signed a series of memoranda of understanding (MOU) agreements with Western companies.
«He had a bad sense of insecurity about being in Vietnam. He was determined to transfer his technology to the US as quickly as possible,» a source familiar with the rare earth industry, granted anonymity to speak without fear of retribution, told Fox News Digital.
CHINESE CITIZEN ADMITS STEALING US TRADE SECRETS FOR NEXT-GENERATION NATIONAL SECURITY TECH
Luu Anh Tuan, chairman of mining company VTRE in his Hanoi office with samples of rare earth oxides in Hanoi, Vietnam, Sept. 7, 2023. (Reuters )
At the time, the world was entirely dependent on Chinese companies to separate their heavy rare earth metals.
«China has been really working for the better part of over 20 years now on building this dominance,» Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies, said in an interview.
And while companies like U.S.-based MP Materials and Australia-based Lynas are in the process of developing their own separation technologies, China still controls up to 90% of the rare earths separation and refining capacity and over half of mining output.
In October 2023, Tuan, then a U.S. permanent resident and green card holder in the process of becoming a citizen, was back in his Hanoi office when Vietnamese authorities raided the building, seizing all laptops and records. Seventeen employees were arrested, according to Tuan’s American business partner, Richard Dunham, and all but one, Do Hanh Huong, Tuan’s sister-in-law and COO of VTRE, have since been released.
The arrest came shortly after President Joe Biden visited Vietnam and signed cooperation agreements on rare earth minerals.
CHINA CONTROLS OVER 80% OF BATTERY MATERIALS CRUCIAL TO US DEFENSE EQUIPMENT, UNSETTLING REPORT REVEALS
In December, China banned rare earth extraction and separation, in what the industry saw as another effort to maintain its monopoly on the market.
«When China put in these restrictions, it really made countries like the U.S. and Australia realize that they didn’t actually even have the technical know-how to do it themselves,» said Baskaran.
«The process itself is just very labor-intensive and very toxic,» said Josh Birenbaum, a minerals expert at the Foundation for Defense of Democracies, adding China cornered the market through state subsidies and lax environmental concerns.
While the U.S. has one major rare earths mine, MP Materials’ Mountain Pass, until this year, the company was exporting those rare earths to China for separation. The trade war and export controls that followed prompted the U.S. to stockpile its rare earths until separation capacity was up to scale at home.
Tuan was accused of forging a value-added tax receipt while trading rare earths with Thai Duong Group, which operates a mine in the northern Vietnamese province of Yen Bai.
Xenotime ore (Getty Images )
VTRE had partnered with Australian mining companies Australian Strategic Materials and Blackstone Minerals Ltd. Tuan and Dunham had also met with officials from the state of Nevada and the Department of Energy to discuss plans to bring the separation technology to the U.S. through VTRE. Both were «enthusiastic» about the proposal, which ultimately led to the signing of the transfer agreement, according to Dunham.
The arrest also came as Vietnam prepared to auction the Dong Pao mine. VTRE, backed by Western partners, was the only qualified bidder, according to Dunham.
This year, Tuan pleaded guilty in exchange for a lighter sentence. He’ll spend 16 years in prison with a fine of $10 million, but his advocates say he was «coerced.» Huong was sentenced to six years in prison.
«We believe these charges to be manipulated, charges that were founded by Vietnamese state actors who have realigned themselves with China,» said Dunham. «He was tortured to obtain a guilty plea.»
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Fox News Digital could not independently verify this claim. The State Department documents credible reports of arbitrary arrests, torture and inhumane treatment by authorities, affecting both political detainees and others in custody. Medical neglect and forced confessions are frequently reported.
Tuan’s advocates say the company he was purchasing ore from, Thai Duong, refused to provide invoices at the actual rate VTRE was paying for ore. It only provided invoices that claimed it was selling ore at a lower rate, reducing its taxable income.
According to Dunham, Thai Duong refused to issue invoices reflecting the actual sale price to VTRE, allegedly to avoid environmental, natural resource and corporate income taxes, obligations that fell on Thai Duong, not Tuan.
Tuan was faced with a choice: accept the lower-rate invoices and make up the tax discrepancies with his own money or allow his state-funded minerals project, and in turn, his business, to collapse, per Dunham.
Though Tuan was convicted on criminal charges, Dunham said the violation of accounting regulations lacks evidence of criminal intent.
«Even if he were guilty of an accounting issue, it’s not something that is criminally liable for what they’re trying to do. No place in Vietnam has there ever been an issue with this type of sentencing. It’s totally unheard of. Typically you would pay a fine and that’s it.»
«He is the only individual outside of China that has a fully integrated rare earth company that’s from mining to metallization; in other words, from digging it out of the ground to the manufacturing of magnets.»
China dominates the global rare earths market. (Reuters)
Tuan was also convicted of smuggling rare earth materials, but customs documents show clearance of 63 shipments of heavy rare earth oxide mixtures under tax code 2846, which corresponds to rare earth compounds. The court misclassified the exports under tax code 2530 (raw ore), to falsely claim they were illegal, according to Dunham.
The Vietnamese Ministry of Public Security’s investigation concluded that customs officers who signed the 63 export declarations for VTRE verified Tuan’s compliance.
China’s crackdown since then has only accelerated. Minerals experts have been ordered to surrender their passports to prevent them from sharing any technology outside the country. Beijing has tightened controls on exports of rare earths, prompting major concerns from within the U.S. defense industry. While China allowed them to flow again during trade negotiations with the Trump administration, they remain banned for defense purposes.
According to Dunham, VTRE has developed the technology to produce heavy rare earth oxides from xenotime, monazite and ion-absorption clay at a purity of 95% through a solvent extraction system. The technology was capable of processing diverse ore types and recycling NdFeB magnets.
Requests for assistance from the U.S. government have not been fruitful, according to Tuan’s advocates.
Tuan is essentially cut off from his family and lawyers. He’s seen family members around five times since his arrest nearly two years ago.
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«We are deeply concerned about his physical and mental well-being,» the source said. «He is mentally resilient. He continues to believe the truth will eventually come to light.»
Fox News Digital has reached out to the White House, State Department, Chinese Embassy and Vietnamese Embassy for comment.
china,tech,defense,geopolitics,politics,asia world regions
INTERNACIONAL
Francia vuelve a las calles contra las medidas de austeridad del gobierno: encabezan la marcha empleados de Stellantis, en seria crisis
Partió la manifestación en parís
El restaurante La Rotonde, el favorito del presidente Emmanuel Macron, blindado. Foto: ReutersMedidas del primer ministro: reducción de impuestos
Carteles contra la «destrucción social» en la marcha de este jueves. Foto: ReutersEl PS en apuros
Manifestaciones más reducidas
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‘Come-to-Jesus meeting’: Military community reacts to Hegseth’s get fit, get in line or get out speech
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War Secretary Pete Hegseth delivered a blunt message to military leaders from around the globe this week: get fit, get on board with the Trump agenda or get out.
It marked the first time generals from around the world had been summoned to convene with the secretary, and many had expected closed-door announcements on trimming the general officer corps, drawing down forces in the Middle East and Europe or cutting civilian and contractor roles.
Instead, what they got was a televised address from Hegseth and President Donald Trump. The secretary pushed a populist message of handing decision-making back to the warfighter, requiring senior leadership to perform physical training in line with lower-ranking officers and bringing uniformity back to the force.
Garrett Smith, an active-duty Marine Corps reservist and CEO of defense tech firm Reveal, said the spectacle was unusual but not without precedent.
TRUMP DECLARES ‘REAWAKENING’ OF ‘WARRIOR SPIRIT,’ UNWAVERING SUPPORT FOR MILITARY: ‘I HAVE YOUR BACKS’
War Secretary Pete Hegseth speaks to military leaders during a meeting at Marine Corps Base Quantico, Va. (Kevin Lamarque/Reuters)
«At a first level, at any big multinational corporation or big organization, when there’s a new boss, it’s totally reasonable to call in all your regional managers and VPs for a setting of tone, to reconfirm the agenda, to ensure alignment. So all of that makes sense,» Smith said. «But obviously, these are not normal times. This is the Trump administration. So it’s going to come with a bunch of enhanced drama and mystique and weirdness about it… the policy and the action might have been totally great, but much of the country is going to be left wondering, what was that really about?»
Even so, Smith argued, the underlying message was unmistakable: «A return to warfighting and preparation for winning wars as the priority mission of the department. There was a perception we’d strayed from that, that it had become just one mission among many. Reconfirming that this is the mission is really important — investing in a warfighting ethos.»
At a moment when the Trump administration is on alert for internal resistance to its agenda, the speech served as a reminder to commanders stationed far from Washington that their authority ultimately flows from the president.
«This is a historic come-to-Jesus meeting,» said Chad Robicheaux, a former reconnaissance Marine who deployed to Afghanistan eight times. «The message is clear: the days of divisiveness, resistance, and undermining leadership are over.»
«It was crystal clear — generals and admirals are on notice: comply and enforce these new policies and culture or be fired. No more woke leaders,» said Amber Smith, a combat veteran and advisor with the Coalition for Military Excellence.
«The topic today is about the nature of ourselves, because no plan, no program, no reform, no formation will ultimately succeed unless we have the right people and the right culture at the Department of War,» Hegseth told the group.
He emphasized that combat fitness tests would be gender-neutral and that high-level officers would need to meet standards.
«It’s completely unacceptable to see fat generals and admirals in the halls of the Pentagon and leading commands around the country and the world. It’s a bad look. It’s not who we are,» he said. «Whether you’re an airborne Ranger or a chairborne Ranger, a brand new private or a four-star general, you need to meet the height and weight standards and pass your PT test.»
Hegseth announced that all personnel must pass physical training tests and meet weight requirements twice a year, and would be required to work out daily. «We’re not talking, like, hot yoga and stretching,» he said. «Real hard PT.»
That represented a departure from previous years, when fitness standards often fell away once officers reached higher ranks and desk-bound commands.
HEGSETH INSTATES ‘HIGHEST MALE STANDARD ONLY’ FOR COMBAT, OTHER CHANGES, DECLARING DEPT. OF DEFENSE ‘IS OVER’
Hundreds of generals were called to Quantico on a week’s notice for Hegseth’s address. (Kevin Lamarque/Reuters)
Smith, who comes from the infantry, said the focus on standards for physical readiness was part of that shift. «If we want to present a deterring force to the world so we don’t have to go to war, we have to be ready to win the next war. That is the deterrent force we project,» he said.
At the same time, Smith acknowledged the cultural edge of Hegseth’s message. «There was an obvious and very clear anti-woke, anti-social-justice threat in there. That is unique to this administration, and it has to be a part of their message every time. That’s not a surprise given the last four or five years.»
From Trump, generals saw a preview of what is expected in the forthcoming national defense strategy: a renewed focus on homeland defense and U.S. dominance in the Western Hemisphere. Trump suggested crime-ridden U.S. cities could even serve as «training grounds» for troops.
«I told Pete we should use some of these dangerous cities as training grounds for our military — National Guard, but military — because we’re going into Chicago very soon,» Trump said.
HEGSETH TELLS TROOPS TO RESIGN IF THEY OPPOSE HIS PLAN TO SCRAP ‘WOKE’ POLICIES AND RESTORE WARRIOR ETHOS
Hegseth’s message carried a personal edge rooted in his own military experience. A former Army National Guard officer who served in Iraq and Afghanistan, Hegseth left the service at the rank of major — well short of the general officer tier he now oversees.
That trajectory has long colored his outsider posture toward the Pentagon brass, giving him credibility with rank-and-file troops but also fueling what some see as a chip-on-the-shoulder tone toward those who climbed higher in the hierarchy.
His insistence that generals shed weight, train daily and live by the same standards as junior officers reflects both his populist instincts and his lived sense of being closer to the warfighter than the war planner.
«I can’t really imagine a scenario where a general needs to be able to run across a battlefield,» one veteran mused.
«It felt a bit theatery,» one junior officer said of the speech. «But he’s right that generals should have to meet the same standards they expect of the people they lead.»
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«The future of the military and ‘war’ department finally is starting to look better, and I’m happy all that bulls— that happened in the past was addressed, and I don’t have to deal with it,» said another.
Hegseth also said he would lift guardrails aimed at preventing bullying and hazing and «empower leaders to enforce standards without fear of retribution or second-guessing.»
«No more walking on eggshells.»
He told military officers in the room that if they didn’t like his message, «then you should do the honorable thing and resign.»
pete hegseth,defense,military,politics,pentagon defense
El canciller de Francia, de visita en Arabia Saudita, consideró este jueves que Hamas “perdió” frente a Israel y que debe aceptar su “rendición“, en momentos en que el grupo terrorista palestino examina un plan de Estados Unidos para poner fin a la guerra en Gaza.
“Hamas tiene una responsabilidad muy fuerte en la catástrofe vivida por los palestinos. Ha perdido. Debe resignarse a su propia rendición“, declaró el ministro Jean-Noël Barrot a AFP.
Tras la publicación, el lunes, del plan de paz del presidente estadounidense Donald Trump, aprobado públicamente por el primer ministro israelí, Benjamin Netanyahu, Barrot reiteró este jueves el apoyo de Francia a esa iniciativa.
“Aplaudimos el plan y queremos trabajar en su puesta en marcha para poner fin a la guerra, al hambre y al sufrimiento en Gaza”, dijo Barrot.
El ministro insistió en el aislamiento de Hamas y recordó que el 12 de septiembre, en la Asamblea General de la ONU se votó por amplia mayoría un texto presentado por París y Riad que defiende un futuro Estado palestino en el que Hamas quedaría al margen.
El plan de Trump prevé un alto al fuego en 72 horas, el desarme de Hamas y la retirada progresiva de Israel a Gaza.
El presidente estadounidense le había dado a Hamas un plazo de “tres o cuatro días” para aceptar su propuesta.
Trump insistió en que “sólo estamos esperando a Hamas” y advirtió que una eventual negativa a la propuesta significaría “un futuro muy triste” para el enclave. Cuestionado por la posibilidad de modificar términos del acuerdo, respondió que el margen para renegociaciones sería “no mucho”, acotando así la flexibilidad para enmiendas de última hora.
Por otra parte, las fuerzas de Israel intensificaron sus operaciones militares en la Franja de Gaza en las últimas 24 horas, al tiempo que aumenta la presión internacional sobre Hamas para que acepte la propuesta de alto el fuego.
En un comunicado emitido por las Fuerzas de Defensa de Israel (FDI), se informó que diferentes divisiones del ejército realizaron allanamientos en la ciudad de Gaza, donde confiscaron armas, eliminaron combatientes considerados como terroristas y destruyeron infraestructura utilizada por milicias armadas.
La División 36 de las FDI incursionó en un edificio militar, localizando “una gran cantidad de armas y equipo militar”, y destruyó puntos logísticos. Por su parte, las divisiones 98 y 99 reportaron ataques aéreos y terrestres que resultaron en la muerte de más combatientes en distintas zonas de la ciudad. Las FDI agregaron que sus tropas continúan avanzando con el respaldo de inteligencia y potencia de fuego para “eliminar células terroristas de Hamas”, además de haber recogido equipo táctico que quedó abandonado tras el repliegue de combatientes palestinos.
Entre el material incautado figuran chalecos, cargadores, granadas, mapas y cámaras utilizadas para la planificación de operaciones y tareas terroristas, los cuales fueron entregados a las agencias de inteligencia israelíes para mayor análisis.
De acuerdo con el comunicado castrense, estas acciones forman parte de la denominada Operación Carros de Gideon II. El ejército aseguró que el combate se desarrolla en “un espacio denso y urbanizado”, combinando acciones encubiertas, inteligencia y ataques precisos. Los soldados actúan en condiciones de alta complejidad, registrando intensos combates y detectando la huida apresurada de miembros de las facciones armadas de Gaza.
(Con información de AFP)
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