Just like coal and oil in the past, rare earth elements (rare earths) and semiconductors have become vital to economic development and national security today. Under the background of the US-China competition, as 90% of the supply of rare earth is controlled by China, rare earth elements could be politically weaponized. Rare earths and semiconductors are strategic goods that empower the development of a high-tech economy. China not only extracts rare earths domestically but also imports and processes them, leading to a near-monopoly in the global rare earth market (Baskaran 2024). Previously, the Obama Administration made attempts to produce rare earths, but none were successful due to high costs and tight environmental regulations.

Source: Forbes August 01, 2024 12:57 UTC