What are 'rare earths' that are escalating US-China trade tensions?

China's increased control over rare earth exports, while the US relies heavily on Beijing for supplies and refining technology, is pushing this strategic mineral to the center of trade tensions between the world's two largest economies.

A dump truck carrying raw ore moves through a mining pit at Mountain Pass mine, California, USA - Photo: BLOOMBERG

On October 9, China announced it would tighten its rare earth exports, requiring licenses for 12 elements and related production technologies. This move is seen as a response to the US imposing high tariffs on Chinese goods in April.

US President Donald Trump immediately threatened to take retaliatory financial measures and hinted that he might cancel his meeting with Chinese President Xi Jinping at the APEC Summit in South Korea later this month. He accused Beijing of "weaponizing" rare earths and breaking the trade truce.

What are rare earths, and are they really “rare”?

According to CNN, “rare earth” is the general name for a group of 17 metallic elements in the periodic table, including scandium, yttrium and the lanthanide group.

Despite their "rare" name, these elements are actually widely distributed in the Earth's crust, even more common than gold.

However, mining and refining rare earths is very difficult, expensive and highly polluting, so the supply is mainly concentrated in a few countries.

Rare earths are essential components of modern technology, from phones, wind turbines, LED lights, flat-screen TVs to electric car batteries, MRI machines and cancer treatments.

For the US military, they are even more important. The 2025 report by the Center for Strategic and International Studies (CSIS) said rare earths are used in F-35 fighters, submarines, satellites, Tomahawk missiles, military lasers and many other weapons.

Why does China have an advantage in rare earths?

According to the International Energy Agency (IEA), China accounts for 61% of global rare earth mining output and controls up to 92% of refining.

Rare earths are divided into two main groups: light and heavy, of which the heavy group is much rarer.

Currently, the US has only one operating rare earth mine in California and is almost entirely dependent on China for extraction.

In addition, according to the US Geological Survey (USGS), 70% of the US's rare earth imports from 2020 to 2023 also came from China.

"Until earlier this year, heavy rare earths mined in California had to be sent to China for refining. China has demonstrated its willingness to weaponize this dependence," said Gracelin Baskaran, director of the Strategic Mineral Security Program at CSIS.

Experts say Beijing has actively maintained the upper hand for decades, considering rare earths a "strategic card" in the trade war.

The new restrictions, announced just ahead of the APEC Summit, when the two countries' leaders are scheduled to meet, are seen as a clear escalation in trade tensions.

This is not the first time this year that Beijing's measures have angered Mr. Trump. In June, he wrote on Truth Social that China had violated the truce by continuing to restrict exports of seven rare earths and related products.

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Source: https://tuoitre.vn/dat-hiem-la-gi-ma-khien-cang-thang-thuong-mai-my-trung-leo-thang-20251012123101997.htm