Tensions between the United States and China have intensified once again, this time over the global supply of rare earth elements — critical minerals used in everything from smartphones and electric vehicles to advanced defense systems. The ongoing trade rivalry between the two superpowers has taken a new turn as both sides exchange sharp words over control, access, and export policies concerning these essential materials.
Rare earths, a group of 17 minerals vital to high-tech manufacturing, have become a strategic flashpoint in global trade. China currently dominates the production and refining of these elements, accounting for nearly 70% of global output. Recent U.S. efforts to reduce dependence on Chinese rare earths — by expanding domestic mining and forging new partnerships with allies such as Australia and Canada — have been met with criticism from Beijing.
Beijing has accused Washington of weaponizing economic cooperation and attempting to disrupt global supply chains under the guise of “security concerns.” In contrast, U.S. officials have argued that China’s dominance poses a potential risk to economic stability and national defense. Washington has also voiced concerns about China’s new export control measures, which could restrict the global flow of certain rare earth compounds critical for semiconductor and battery industries.
Analysts warn that this growing tension could have far-reaching consequences for industries worldwide. Many manufacturers rely heavily on rare earth imports, and any disruption could drive up prices and slow production of high-tech goods, electric vehicles, and renewable energy systems. As nations race toward cleaner technologies, demand for these minerals is expected to skyrocket — making supply chain resilience a top global priority.
The Biden administration has already taken steps to secure alternative sources, including reopening U.S. mines and funding rare earth processing facilities. Meanwhile, China insists it will continue to use its rare earth resources “in a manner that serves its national interests,” a statement widely viewed as a strategic warning.
Experts believe the rare earth standoff represents more than just a trade dispute — it reflects the deeper geopolitical struggle for technological and economic dominance. As both nations push for self-reliance and influence in the next era of global industry, rare earths have become the new battleground in a rapidly evolving economic cold war.