China Weaponizes Rare Earth Mineral Monopoly Against the U.S.

China is weaponizing its control over rare earth minerals against the United States and using them as leverage to incentivize cooperation with smaller states, the Diplomat reported Friday.

China has an almost total monopoly over the mining and refining of many vital rare earth minerals, including dysprosium, erbium, terbium and yttrium, accounting for some 90 percent of global supply. These are essential components in the manufacture of a variety of electronics and weapons.

Carrot or stick: China uses a “carrot and stick” approach to leverage its dominance of rare earth minerals, offering rare earth deals to nations that maintain a neutral stance or do not align with the West while restricting exports to countries that lean westward.

• Malaysia, a country rich in rare earths but lacking processing technology, entered a major deal with China to share rare earth separation technology.
• In Myanmar, a China-backed militia recently secured control over abundant new rare earth mines, demonstrating that China will apply “the stick” to get what it wants.

China is sending a clear message to its neighboring nations that they will be rewarded for siding with China against the U.S. in their escalating trade war. For many of these less-developed nations, allegiance with China offers the opportunity to improve their industrial capacity, develop their technological abilities, and strengthen their economy.

Weaponization: China has a history of weaponizing its monopoly over rare earth minerals.

• It halted flows of numerous rare earth minerals to Japan over a territorial dispute.
• Previously, it stopped the export of some rare earths into the U.S. and restricted the export of several others in response to U.S. tariffs.

Trade war: This escalating trade war has grave implications for the U.S., whose heavy dependence on these elements could prove an important factor in a prophesied siege against America.

To understand what this could mean for America’s future, read our Trends article “Why the Trumpet Watches the Development of a Massive Anti-American Trade Bloc.”