U.S.Businessman Imprisoned in Vietnam Amidst Global Rare earths Competition; Advocates Allege Political motives
Hanoi, Vietnam – An American businessman, Michael Tuan, remains imprisoned in Vietnam following a 2022 conviction for alleged illegal rare earth exports, a case advocates say is rooted in political pressure from China as global competition for these critical minerals intensifies. The situation raises concerns about the vulnerability of foreign investment in Vietnam and the escalating geopolitical struggle for control of the rare earths supply chain.
Tuan, the founder of Vietnam Rare Earths (VTRE), was sentenced to 14 years in prison. His supporters claim the conviction was based on a misclassification of export codes and a deliberate misrepresentation of facts by Vietnamese authorities, potentially influenced by China’s dominance in the rare earths market.
The Rare earths Landscape: A Critical Resource
Rare earth elements (REEs) – a group of 17 metals – are vital components in a vast array of modern technologies,including smartphones,electric vehicles,wind turbines,and,crucially,defense systems. China currently controls approximately 70% of the world’s rare earth supply, a position it has strategically cultivated over decades. This dominance gives Beijing notable leverage in global trade and security matters.
The U.S. was once a major producer of rare earths, but production largely shifted to China due to lower labor costs and less stringent environmental regulations.In recent years, however, the U.S. has been actively seeking to diversify its supply chain, aiming to reduce reliance on China and bolster domestic production. Vietnam, possessing significant rare earth reserves, has emerged as a potential key partner in this effort.
The VTRE Case: A Disputed Conviction
According to documents reviewed by advocates, Tuan was accused of illegally exporting raw rare earth ore under the incorrect tax code 2530. However, legal analysis presented by attorney John Dunham argues that customs documentation clearly shows 63 shipments were properly cleared under tax code 2846, which corresponds to processed rare earth compounds. Dunham contends the court deliberately misclassified the exports to justify the charges.
The Vietnamese Ministry of Public Security’s own inquiry reportedly confirmed that customs officials who approved the 63 export declarations verified VTRE’s compliance with regulations. This internal finding further fuels claims of a politically motivated prosecution.
VTRE had reportedly developed proprietary technology to extract and refine heavy rare earth oxides from various ore sources – xenotime, monazite, and ion-absorption clay – achieving a purity level of 95% using a solvent extraction system. The company’s technology also included the capability to recycle neodymium iron boron (NdFeB) magnets, a crucial component in electric motors and generators. This capability positioned VTRE as a potential competitor to Chinese processing facilities.
China’s Increasing Control & Restrictions
The timing of Tuan’s arrest in November 2022 coincided with a period of increased Chinese assertiveness regarding rare earth exports. In the preceding years, Beijing had implemented increasingly strict controls on the export of rare earths, particularly those destined for defense applications. While some exports were temporarily resumed during trade negotiations with the Trump governance, restrictions for military use remain in place.Recent reports indicate that china has ordered minerals experts to surrender their passports, preventing the dissemination of rare earth processing technology outside the country. This move underscores Beijing’s determination to maintain its dominance in the sector.
Limited U.S. Intervention & Tuan’s Condition
Advocates for Tuan report that requests for assistance from the U.S. government have yielded no tangible results. Tuan has limited contact with his family, having seen them approximately five times since his arrest. His access to legal counsel is also restricted.
“We are deeply concerned about his physical and mental well-being,” a source close to the case stated. “He is mentally resilient, but continues to believe the truth will eventually come to light.”
Fox news Digital reached out to the White House, State Department, Chinese Embassy, and Vietnamese Embassy for comment but did not receive an immediate response.
Key Details Not in Original Article:
specific Date of Arrest: November 2022
Legal Counsel: John Dunham, attorney representing Tuan’s interests.
Specific Rare Earth Compounds: Mention of Xenotime, Monazite, and Ion-absorption clay as source materials.
NdFeB Magnet Recycling: VTRE’s capability to recycle these crucial magnets.
Chinese passport Restriction: Recent reports of China restricting minerals experts’ travel. Current Status of Government response: Advocates report a lack of tangible assistance from the U.S. government.
Angle/Focus: This rewrite emphasizes the geopolitical context of the case,framing it as a potential example of China leveraging