China’s Rare Earth Monopoly Puts Global Powers on Edge: China holds a tight grip over the global supply of rare earth elements (REEs), a dominance that is now shaping world politics and trade dynamics. These 17 minerals, crucial for advanced technologies like electric vehicles, smartphones, defense systems, and renewable energy, have given China unmatched leverage on the global stage. (China’s Rare Earth Monopoly Puts Global Powers on Edge)
Under Xi Jinping’s leadership, China strategically limited REE exports during past geopolitical tensions a move that forced even strong opponents like former US President Donald Trump to adjust their stance. With over 85% of global processing capacity, China’s control goes beyond mining; it dictates the pace and pricing of the world’s green and tech transition.
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India is also feeling the heat. Despite having reserves of its own, the country lacks sufficient refining and processing infrastructure. As global demand for EVs, semiconductors, and clean energy grows, India’s dependence on Chinese REEs threatens its manufacturing ambitions and national security preparedness. The Indian government has taken early steps toward exploration and partnerships with like-minded countries, but it’s a race against time.
The U.S. and EU have already begun diversifying their supply chains by funding domestic projects and aligning with Australia, Japan, and India. But breaking China’s monopoly is no easy feat the process of mining and refining REEs is highly complex and environmentally taxing.
As the global REE tug-of-war intensifies, countries are being forced to choose between economic pragmatism and strategic autonomy. The question remains can the world shift away from China’s rare earth dominance, or will it continue to bow to Beijing’s mineral muscle?
