Rare earths were once a quiet part of global trade. Many people probably didn’t know what they were or why they mattered. That changed during the US-China trade war under the first Trump administration. Suddenly, these 17 obscure elements became headline material – not because they were new, but because they were everywhere: in electric vehicles, smartphones and weapons systems. And China controls the lion’s share of the global supply.
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This dominance didn’t happen by accident. China has spent decades building its rare earth industry from the ground up. It invested in mining, refining and research and, most importantly, in people. Over 11.7 million Chinese university students graduated last year, including many trained in geology, materials science and rare earth engineering. Industry observers estimate that over 30 Chinese universities produce hundreds of graduates annually in related fields, a pipeline the US simply doesn’t have.
Earlier this year, the US and China reached an agreement to resume rare earth shipments after a tense stand-off. But the catch? The US refused to let China buy advanced chips and semiconductor tools. That imbalance didn’t sit well in Beijing.
Last week, China responded by announcing new export controls on rare earth technologies. The restrictions cover the know-how behind refining and magnet production. The message is clear: if you want our materials, you can’t block our tech advancement.
US President Donald Trump called China’s move “extraordinarily aggressive” and threatened an additional 100 per cent tariffs on Chinese goods. However, behind the bluster, the reality is more complicated. The US needs China’s rare earths. It doesn’t have the capacity to replace them any time soon. China knows it.
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Still, it’s important to understand what China is and isn’t, as well as what it’s doing. It’s not cutting off exports. It’s tightening control over how its resources and knowledge are used. From China’s perspective, this isn’t aggression. It’s self-protection. If the US continues to treat China as a threat, blocks its tech purchases and escalates things over Taiwan, then Beijing sees little reason to keep playing nice.