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

China's increased control over rare earth exports, coupled with the U.S.'s heavy reliance on Beijing for supplies and refining technology, is pushing this strategic mineral to the forefront of trade tensions between the world's two largest economies.

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

On October 9-10, China announced stricter export controls on rare earth elements, 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 retaliatory financial measures and hinted he might cancel a meeting with Chinese President Xi Jinping at the APEC summit in South Korea later this month. He accused Beijing of "weaponizing" rare earth minerals and breaking the trade truce agreement.

What are rare earth elements, 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 name, these elements are actually widely distributed throughout the Earth's crust, even more so than gold.

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

Rare earth elements are indispensable components in modern technology, from phones, wind turbines, LEDs, and flat-screen TVs to electric vehicle batteries, MRI machines, and cancer treatments.

For the U.S. military, they are even more important. A 2025 report by the Center for Strategic and International Studies (CSIS) stated that rare earth elements are used in F-35 fighter jets, submarines, satellites, Tomahawk missiles, military lasers, and many other pieces of equipment.

Why does China have an advantage in rare earth elements?

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

Rare earth elements are divided into two main groups: light and heavy, with the heavy group being much rarer.

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

Furthermore, according to the U.S. Geological Survey (USGS), 70% of U.S. rare earth imports between 2020 and 2023 also came from China.

"Until the beginning of this year, heavy rare earth minerals mined in California had to be sent to China for refining. China has demonstrated its willingness to turn this dependence into a weapon," said Gracelin Baskaran, Director of the Strategic Mineral Security Program at CSIS.

Experts believe that Beijing has proactively maintained the upper hand for decades, viewing rare earth elements as a "strategic asset" in the trade war.

The new restrictions, announced just before the APEC summit, where leaders from both countries are expected to meet, are seen as a clear escalation in trade tensions.

This isn't the first time this year that Beijing's actions have angered Trump. In June, he wrote on Truth Social that China had violated the truce agreement by continuing to restrict exports of seven rare earth elements and related products.

Back to the topic

PUBLIC

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