Police officers patrolling a rail line from China’s Guangxi region into Vietnam in 2020. Chinese smugglers have sometimes moved rare earth minerals through the mountain jungles along the border with Vietnam.
Instead of battling over tariffs, Washington and Beijing have turned to a potentially far more harmful strategy: flexing their control over global supply chains.
The jet engine technology that powers airplanes comes mostly from U.S. companies, but the engines can’t function without rare earth minerals that are manufactured largely in China.
Since early April, China has stopped almost all shipments of critical minerals that are needed for cars, robots, wind turbines, jet fighters and other technologies.
Instead of battling over tariffs, Washington and Beijing have turned to a potentially far more harmful strategy: flexing their control over global supply chains.
Since early April, China has stopped almost all shipments of critical minerals that are needed for cars, robots, wind turbines, jet fighters and other technologies.
The United States allowed its rare earth metals industry to move to China and could now face severe economic disruption as China limits crucial supplies.
China seized mines and built factories. Japan took note and invested in Australia. But the United States did little despite concerns about control of supplies.
Beijing’s ban on exporting six valuable minerals highlights America’s reliance on China for many raw materials that Washington has designated “critical.”