Historical dominance… How did China benefit from the rare earths war with Trump?
At the height of trade tension between the United States and China In 2025, Beijing emerged as the biggest beneficiary of the Rare metals ignited by US President Donald Trump after his return to the White House.
China has exploited its historical dominance over this vital sector to enhance its geopolitical and economic position, at a time when Washington and Western countries were desperately searching for alternatives.
Dominance from extraction to innovation
China is the world’s first power in the rare earths sector, and controls all stages of the industry, from extraction to refining and then innovation and technology. These minerals include 17 basic elements used in advanced industries such as: electric cars – Electronic chips – renewable energy – weapons systems – communications technologies.
Experts warn that any country trying to dispense with Chinese supplies will need many years to establish an alternative production system.
"Janzhou" Center of Strategic Influence
The Ganzhou region in southeastern China witnessed unprecedented activity in November 2025, as the city is a global center for the production of heavy rare earth elements such as yttrium and terbium.
AFP correspondents monitored dozens of trucks entering and leaving the mines, while work is underway to establish a huge new headquarters for the China Rare Earth Elements Group, one of the largest government companies in the sector.
These moves confirm Beijing’s determination to maintain its leadership and strengthen its grip. On the global market.
Export restrictions that shook global industries
In the midst of the trade war, China imposed strict restrictions on the export of rare metals, which caused a major shock to global technology and defense companies, and the partial and temporary lifting of these restrictions became one of the main points in the truce that was reached during a summit between Trump and Chinese President Xi Jinping in South Korea at the end of October 2025.
This step is widely considered a diplomatic victory for Beijing, It has proven its ability to use these resources as an effective leverage.
Insurmountable commercial influence
Despite the long history of the United States in this sector, especially the Mountain Pass mine, which supplied the world with most of its needs during the Cold War, the transfer of production by American companies in the 1980s and 1990s allowed China to build its current dominance.
Today, China controls: two-thirds of the global production of rare earths, and the largest natural reserves of these. Elements
A quasi-monopoly on refining and separation operations, and significant progress in patents and technology related to the field.
China had previously used this influence in 2010 when it suspended its exports to Japan due to a territorial dispute.
The shock of 2025 and Washington’s action
The events of 2025 demonstrated the urgent need for the United States and the European Union to diversify sources of supplies, and Washington has already begun major steps to address the crisis, The most prominent of which are:
– Defense investments to create a local supply chain "From mine to magnet" By 2027.
– An agreement with Australia worth $8.5 billion to develop joint capabilities.
– Signing new agreements with Japan, Malaysia, and Thailand to enhance cooperation in vital minerals.
Beijing is the biggest winner
Despite American pressure, China was able to impose negotiation conditions, demonstrate its ability to control markets, prove that the world cannot do without Chinese supply chains, and expand its investments and production facilities during the crisis. itself.
And with that, I got out "Rare earth war" It is more powerful and influential, while its opponents found themselves facing many years before achieving true independence in this strategic sector.
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