China holds a near-monopoly in the processing of the elements crucial for making everything from smartphones to fighter jets.

Last week, China’s Ministry of Commerce published a document that went by the name of “announcement No. 62 of 2025”.

But this wasn’t just any bureaucratic missive. It has rocked the fragile tariffs truce with the US.

The announcement detailed sweeping new curbs on its rare earth exports, in a move that tightens Beijing’s grip on the global supply of the critical minerals - and reminded Donald Trump just how much leverage China holds in the trade war.

China has a near-monopoly in the processing of rare earths - crucial for the production of everything from smartphones to fighter jets.

  • RandAlThor@lemmy.caEnglish
    310·
    2 months ago

    It’s not new, and it’s known to China and any half-intelligent observer forever. Rare earths are the only lever China has on US. US on the other hand has a chokehold on China’s throat, its economic future and present: AI chips, and the largest single export market for China’s economic engine while its economy falters - its exports. Trump has the leverage, and he’s bargaining hard.