Title: How China Came to Rule the World of Rare Earth Elements - A Deep Dive into the Supply Chain Chokehold
In today's interconnected world, rare earth elements (REE) have become indispensable in our daily lives, powering everything from smartphones and speakers to defense systems like fighter jets. However, it is China that holds a near-monopoly on refining these precious materials, giving them an unprecedented level of control over global supply chains. This blog post aims to provide a detailed analysis of how China came to rule the world of rare earth elements and its potential implications for international trade relations.
The journey begins in the 1980s when China started investing heavily in mining and refining REEs, taking advantage of their abundant reserves. Over time, they developed advanced technologies that allowed them to extract these elements more efficiently than any other country could. By the early 2000s, China had become the world's largest producer of rare earth materials, accounting for over 95% of global production.
This dominance gave China a significant advantage in international trade negotiations. In recent years, they have used this leverage to exert pressure on other countries by tightening control over their supply chains and imposing export quotas. For instance, when the United States imposed tariffs on Chinese goods during the trade war, Beijing retaliated by restricting exports of rare earth elements to American companies.
The implications of China's monopoly are far-reaching. It not only affects international trade relations but also poses a significant risk to national security. Many defense systems rely heavily on REEs for their operation, making countries overly dependent on Chinese supplies vulnerable to potential disruptions in supply chains. Moreover, the concentration of mining activities in China has led to environmental concerns and human rights violations that need immediate attention.
As we move forward into an increasingly digital world, it is crucial to address this issue urgently. Diversifying sources for rare earth elements should be a priority for all nations involved in international trade. Investing in research and development of alternative technologies could also help reduce our reliance on these precious materials.
In conclusion, China's dominance over the rare earth element market is a significant concern that requires immediate attention from policymakers worldwide. By diversifying sources and investing in sustainable alternatives, we can mitigate potential risks associated with this supply chain chokehold while ensuring fair trade practices for all involved parties.
Source: [Original Article](https://www.npr.org/2025/07/23/nx-s1-5475137/china-rare-earth-elements) #china
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