Ruqayyah Snyder
Australia and China have been involved in an escalating trade war, with China imposing restrictions on exports of rare earth minerals and banning the import of Australian live rock lobsters. Australia, in turn, has banned the Chinese-owned app DeepSeek from government devices, citing national security concerns and data privacy risks. This follows a previous ban on TikTok and Huawei products.
| Characteristics | Values |
|---|---|
| Type of ban | Rare earth mineral banAI chatbot ban |
| Reason for ban | National security concerns |
| Products banned | TikTokHuaweiDeepSeek |
| Other countries with similar restrictions | ItalyTexasSegments of the U.S. military |
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What You'll Learn
Rare earth refining and processing
Rare earths are a group of 17 elements that are challenging to extract and refine. They are critical in the production of technologies such as electric vehicles, defence systems, and clean energy solutions. China currently controls 60% of the world's rare earth production and refines nearly 90% of it, giving it a near monopoly. This monopoly has significant implications for the economic and national security of the United States, which relies heavily on China for its supply of rare earths.
Recognizing the risks, the United States has begun investing in domestic processing capabilities, such as providing a $35 million grant to MP Materials Corp. to establish a full-value chain operation for extracting and manufacturing rare earth magnets. Additionally, the Select Committee on the Strategic Competition between the United States and the Chinese Communist Party has recommended that Congress incentivize the production of rare earth element magnets and establish tax incentives to promote domestic manufacturing.
Australia, a close ally of the United States, is also taking steps to address the issue. Australia has the potential to break China's monopoly on rare earth refining and processing. Lynas Rare Earths, the country's largest producer of separated rare earths, operates a processing plant in Western Australia. However, like other countries, Australia still relies on China for refining capabilities. Arafura Rare Earths, based in Perth, received funding to create the country's first combined mine and refinery for rare earths. Australia's Critical Minerals Research and Development Hub is also working to enhance international cooperation and technical capacity in critical minerals, including rare earth processing initiatives.
Despite these efforts, Australia is expected to depend on China for refining until at least 2026. The country's dual role as a major upstream supplier to China and a strategic ally of the United States puts it in a delicate diplomatic position.
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DeepSeek AI on government devices
DeepSeek is a Chinese AI application founded by Liang Wenfeng, a graduate of Zhejiang University. It was released in December 2023 and has since gained prominence in the AI industry. DeepSeek's parent company, High-Flyer, is a stock trading firm based in China that uses AI to analyze financial data and make investment decisions.
Due to concerns over national security and data protection, DeepSeek has been banned on government devices and networks in several regions, including New York, Virginia, and Australia. Governor Kathy Hochul of New York issued a statewide ban on DeepSeek, citing serious concerns over its connection to foreign government surveillance and censorship, as well as data harvesting and technology theft. Similarly, Governor Glenn Youngkin of Virginia banned DeepSeek on state devices and state-run networks, stating that it posed a threat to the security and safety of the citizens of the Commonwealth of Virginia.
In Australia, the ban on DeepSeek is part of the country's strategy to counter China's monopoly on rare earth refining and processing. China's Ministry of Commerce announced expanded export controls and a shift in pricing principles for rare earth elements, which are crucial for electric vehicles, wind turbines, and military equipment. Australia, as a trusted US ally with rich geological resources, has the potential to break China's monopoly. However, it faces structural barriers and geopolitical tensions in its dual role as a supplier to China and an ally of the US.
The rise of DeepSeek has been a boost for the Chinese government, showcasing their growing technological prowess and self-reliance. However, it has also raised concerns about tech isolationism and the potential for unwanted outcomes, such as government surveillance and censorship. As a result, governments are taking steps to safeguard their operations and information, while also aiming to drive innovation and increase operational efficiencies through the responsible use of AI.
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Huawei from its national 5G network
In 2020, Australia banned Huawei, a Chinese telecommunications company, from its national 5G network. This decision was made amidst growing concerns about the potential security risks posed by the company's involvement in the country's critical infrastructure.
Huawei has been a leader in the development and deployment of 5G technology globally. The company has made significant investments in 5G research and product development, becoming the first company to launch a 5G commercial chip and providing end-to-end 5G products and solutions. However, despite its technological advancements, Huawei has faced scrutiny and restrictions in several countries due to its alleged ties to the Chinese government and the potential for data exploitation.
In the case of Australia, the decision to ban Huawei from its 5G network was likely influenced by similar actions taken by its allies, such as the United States, which banned Huawei from its networks in 2016. By excluding Huawei, Australia aimed to protect its national security interests and prevent the company from accessing sensitive data and infrastructure.
This ban has had implications for Australia's telecommunications industry, as Huawei was a significant player in the market. However, the Australian government prioritized national security concerns over potential economic impacts. Additionally, the ban highlighted the ongoing strategic competition between China and Western nations in the realm of telecommunications and technology.
The exclusion of Huawei from Australia's 5G network is part of a broader trend of countries reevaluating the presence of Chinese companies in their critical infrastructure, particularly in the telecommunications sector, where data security and privacy are of utmost importance.
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Imports of Australian live rock lobsters
In 2025, China lifted its ban on imports of Australian live rock lobsters. This move marked the end of a multi-billion-dollar trade war between Canberra and Beijing.
The ban on Australian live rock lobsters was part of China's strategic efforts to control the pricing and supply of critical minerals, such as rare earth elements. China's Ministry of Commerce announced expanded export controls and a shift in pricing principles, leveraging its global dominance in rare earth refining and processing.
The lifting of the ban on Australian live rock lobsters indicates a potential shift in China's trade strategies or a result of Australia's diplomatic tightrope between its role as a major upstream supplier to China and a strategic ally of the US.
Australia has strategic deposits of critical minerals, such as Mt Weld in Western Australia, which has drawn interest from Japan, Europe, and the US. Australia is also better positioned than the US to develop secure supply chains due to its rich geological resources and transparent regulatory environment.
To counter China's dominance in rare earth refining and processing, Australia has initiated measures under its "Future Made in Australia" initiative. These measures include strategic stockpiling, production tax credits, and expanded support for domestic processing. Australia's ability to act swiftly and decisively will determine its success in breaking China's monopoly in this sector.
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TikTok on government devices
Australia has found itself in a unique strategic position as a trusted US ally amid the escalating trade war between the US and China. China's latest restrictions target seven rare earths, including dysprosium and terbium, which are crucial for electric vehicles, wind turbines, fighter jets, and missile systems. While not a complete export ban, the policy functions as a chokepoint, leveraging China's near-total global control of rare earth refining and its monopoly on heavy rare earth processing.
In response, the US has acknowledged its deep dependence on China for materials essential to its technological competitiveness, clean energy transition, and national defense. Australia, with its rich geological endowment and transparent regulatory environment, is better positioned than the US to develop secure supply chains. Under its Future Made in Australia initiative, the Australian government is considering measures such as strategic stockpiling, production tax credits, and expanded support for domestic processing.
In addition to the economic and resource-related aspects, there have also been concerns related to the popular social media app TikTok. The US government has taken steps to prohibit the use of TikTok on government devices due to national security concerns. The No TikTok on Government Devices Act was signed into law in 2023, prohibiting the use and requiring the removal of TikTok from all federal government devices. This move was echoed by other Western governments, including Canada and the European Commission, who have also banned the use of TikTok on government devices.
The US Senate has also expressed concerns about the potential for American users to be vulnerable to cyber blackmail, with FCC Commissioner Brendan Carr stating his desire to see TikTok banned entirely in the US. The White House set a 30-day deadline for federal agencies to remove TikTok from government-issued devices, with limited exceptions for law enforcement activities, national security interests, and security research. Agencies were also ordered to block the installation of TikTok on government devices and prevent any internet traffic between the app and these devices.
The actions taken by the US and other Western governments highlight the growing concerns over the potential risks posed by TikTok to privacy and national security. While China has not specifically banned TikTok in Australia, the broader context of the escalating trade war and resource restrictions suggests a complex diplomatic landscape that Australia must navigate carefully.
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Frequently asked questions
China has banned the import of Australian live rock lobsters. China has also restricted seven rare earths, crucial for electric vehicles, wind turbines, fighter jets, and missile systems, which are produced in Western Australia.
China's ban on Australian live rock lobsters was likely part of a trade war between the two countries. China's restrictions on rare earths are an attempt to shift rare earth pricing from market supply and demand to pricing based on their strategic value.
Yes, Australia has banned the Chinese-owned app TikTok from government devices, along with the Chinese chatbot DeepSeek, due to national security concerns.
