China's Rare-Earth Monopoly and Geopolitics
China has implemented new rare-earth export controls, solidifying its dominance and extending restrictions to technology, equipment, and expertise.
This move has heightened tensions with the US and its allies, emphasizing the significance of critical minerals in determining economic and geopolitical power.
- Export licenses are now linked to the use of Chinese equipment or inputs.
- A ban on Chinese personnel exporting their expertise prevents the transfer of know-how.
Control over critical minerals now defines the balance of economic and geopolitical power.
The result is increased cost and complexity of diversification, making supply chain rerouting a heavy cost.
Author's summary: China's rare-earth monopoly affects global geopolitics.