China holds a near-monopoly in the processing of the elements crucial for making everything from smartphones to fighter jets.

Last week, China’s Ministry of Commerce published a document that went by the name of “announcement No. 62 of 2025”.

But this wasn’t just any bureaucratic missive. It has rocked the fragile tariffs truce with the US.

The announcement detailed sweeping new curbs on its rare earth exports, in a move that tightens Beijing’s grip on the global supply of the critical minerals - and reminded Donald Trump just how much leverage China holds in the trade war.

China has a near-monopoly in the processing of rare earths - crucial for the production of everything from smartphones to fighter jets.

  • suigenerix@lemmy.worldEnglish
    18·
    1 day ago

    Yes, resource availability isn’t the issue, and “just invest more” has some massive hurdles:

    • China has over 25,000 patents in the field of rare earths
    • China doesn’t have the strict environmental-protection regulations like much of the rest of the world. It keeps the price very low, but at great cost to its environment from toxic run-off and the like
    • Complex, expensive solvent extraction processes require extensive experience that China is well ahead of the rest of the world on
    • China has a highly integrated supply chain from mining to finished product manufacturing

    All these mean any processing outside of China is going to be incredibly expensive and competitively unprofitable. It’s not impossible to do, and removing dependence from China is probably worth it, but it’s going to take a lot of capital and time to achieve and sustain.

    • randomname@scribe.disroot.orgEnglish
      7·
      1 day ago

      … any processing outside of China is going to be incredibly expensive and competitively unprofitable.

      China itself is mining rare earths abroad such as in Myanmar and in Indonesia …

      We urgently needed transparent supply chains …