China’s planned restrictions on rare earth exports could put $6.5 trillion in downstream production at risk, the International Energy Agency said, underscoring Beijing’s chokehold over an industry critical to the global economy.
Last October, China decided to expand export controls in response to tariffs imposed by Washington, though Beijing later postponed implementation by a year. While the US and other Western countries have vowed to reduce their reliance on China’s rare earths, experts say the shift could take years to play out.
“China built its leverage by making the world believe it was the sole supplier,” a senior White House economic advisor wrote. “America’s task is to work with our free-world allies to make sure there is an alternative.”
