The United States and Western allies are working to establish a rare earth supply chain to counter China’s monopoly.
As China uses its rare earth monopoly to threaten the survival of the U.S. military, computer chip, and automotive industries, it has spurred the arrival of a post-China rare earth monopoly era. The United States is working with allies to establish a rare earth supply chain independent of China.
Experts have also designed a mechanism to sustain the Western rare earth supply chain to counter the impact of China’s low-price strategy.
U.S. Treasury Secretary Scott Bessent told the Financial Times on Oct. 31 that Beijing’s threat to halt rare earth exports was “a real mistake,” and said that China can no longer use rare earths as a tool of coercion in the near future. He said Chinese leverage over the United States in rare earths would last no more than 12 to 24 months.
While there are differing opinions on how long it will take for the United States to establish its own rare earth supply chain, many officials and experts agree that China’s use of a rare earth monopoly to threaten the United States will be “shooting itself in the foot.”
Kenneth Rogoff, former International Monetary Fund chief economist and current Harvard University professor of international economics, told The Epoch Times, “I can guarantee you that China’s monopoly position will be badly weakened by its actions, because over time, countries will find other sourcing.”
Northeastern University Professor of Electrical and Computer Engineering Vincent Harris told The Epoch Times that while China’s use of rare earths to intimidate the world appears powerful, it is actually entering a dangerous situation.
“This is like a poker game. And China has used the rare earth monopoly that it enjoys as a geopolitical tool,” Harris said.
“Some say a geopolitical weapon in order to influence and get its way by withholding or enforcing quotas on rare earth.
“They have been able to do this very successfully over the last 10 or 20 years. But they have to be very careful in doing this, because if they push the European Union or the United States too far, then these countries will find an alternative to the rare earth magnets, and then China will be left without that tool, that ability.”
By Jennifer Li
