Benjamin Triebe describes in the Neue Zürcher Zeitung how a Swiss window manufacturer found itself caught between the fronts of the US-China trade war. The window manufacturer wanted to import magnets from China to support the locking mechanism of window sashes. However, magnets contain rare earth elements, and China is increasingly controlling their export as a means of exerting pressure on the US. The company had to obtain authorisation from the Chinese authorities to ensure that the magnets would not be used for military purposes or end up in the US. The procurement of the magnets was delayed by half a year.
Swiss companies procure large quantities of intermediate products containing rare earths. However, many companies do not have a detailed enough understanding of their supply chains to assess the extent to which they are affected by Chinese export controls, and they have no alternatives should the procurement of such intermediate products become more difficult. It therefore seems crucial that companies increase the transparency of their supply chains and enhance their resilience to export controls!