UnpressAI

13 Aug 2025, 22:06

China Controls Rare Earth Elements for the West

  • China controls 90% of the world's supply of rare earth elements.
  • The USA is seeking ways to reduce its dependence on China.
  • Trade negotiations between the USA and China are ongoing with the aim of stabilizing supply.

There is a growing concern in the world due to the blockade of rare earth element exports from China, which began in April 2025. These elements are critically important for the production of electronics, automobiles, and other products. China controls 90% of the world's supply of refined rare earth elements, which has caused a panic among manufacturers globally. For example, Ford halted one of its production lines in Chicago, while automobile companies in India and Japan have reduced production.

The head of the European Commission, Ursula von der Leyen, revealed China's actions, stating its domination and leverage. Meanwhile, in the USA, negotiations continue between President Donald Trump and Chinese leader Xi Jinping, who aim to find a compromise in the trade war and ensure the stability of rare earth element supply.

The trade war between the USA and China has forced American officials to seek ways to reduce dependence on Chinese supplies. New trade agreements are already being negotiated, which include obligations from partners such as Japan and South Korea to invest in American manufacturing. This is intended to help reduce the USA's vulnerability in critical sectors.

Tags: USA/China/Politics/Economy

Articles on this topic:

  • edition.cnn.com - Beneath Trump’s China truce, a race to find pressure points in high stakes game of ‘3D chess’
  • www.economist.com - Xi Jinping’s weaponisation of rare-earth elements will ultimately backfire