US-China Rare Earths Trade Conflict Intensifies with US Strategic Industry Stakes, Chinese Export Controls

The United States, under President Donald Trump, is intensifying government intervention to counteract China's dominance in rare-earth minerals, critical for modern manufacturing and defense technologies. China holds an overwhelming share of global rare earth processing and magnet production, enabling it to leverage export bans as a strategic tool in trade tensions with the U.S., including recent rare-earth mineral export restrictions affecting products with any trace of Chinese material. The Trump administration is responding by increasing stakes in strategic industries and implementing price floors to stabilize supply and revenue, while also pushing legislation to build domestic rare earth supply chains and manufacturing capabilities. Meanwhile, Australia sees an opportunity to expand its rare-earth projects, aiming to reduce global reliance on China. Despite efforts, the U.S. still faces significant gaps in commercial-scale processing and technology expertise, leaving it vulnerable to China's control. This rare-earth supply chain dynamic has become a pivotal element in the broader U.S.-China trade conflict, shaping upcoming high-level negotiations and geopolitical strategies.