Archive · 17 Jun 2025
Rare Earths: China's New Geopolitical Weapon?
The U.S. and China are in a tech competition, like a new Cold War.
China has control over rare earths, used in powerful magnets.
The U.S. is worried because China is investing a lot in making their own chips.
Rare earths are important for making motors in many things, even weapons.
The U.S. has not invested as much in rare earth, so it could be at a disadvantage.
Also, America's battery production might not be growing fast enough and would need to depend more on China.
China's control of rare earths is seen as a potential geopolitical weapon.
Beijing responded to US tech restrictions with investments in semiconductors and R&D.
Rare-earth magnets are vital for motors in various technologies, including military applications.
The U.S. has invested less in rare-earth supply chains compared to China's chip investments.
Potential decline in U.S. battery manufacturing capacity may increase reliance on China.
- Who
- U.S. and Chinese governments; Huawei; SMIC.
- What
- China's dominance in rare earths is viewed as a strategic advantage in tech competition with the U.S.
- When
- Since 2019, intensifying in recent years.
- Where
- United States and China.
- Why
- To gain a strategic advantage in technology and potential military applications.
China
United States
Goals
China
Strengthening its tech industry, expanding control of strategic resources.
United States
Reliance on imports of essential materials.
- Key Resource
- Rare Earths
- Chinese Investment
- $33.5B in chip foundries, $4B in R&D
- Huawei R&D Spend
- $25B annually
- U.S. Rare Earth Investment
- $439 million
- Potential Outcome
- U.S. dependency on China