"The United States has known for years that its economy runs on materials that it can't control. The rare-earth metals that power F-35 fighter jets, electric vehicles, and iPhones mostly comes from one place: China. Now, after years of warnings, that dependence has turned from an abstract vulnerability into a central fault line in global trade. An agreement between President Donald Trump and Chinese President Xi Jinping earlier this month has pulled the U.S. back from the brink of panic, at least for now,"
"Beijing's planned rules, due to take effect December 1, would have required a licence for any company anywhere in the world exporting even trace amounts of rare-earth materials that originated in China. Analysts warned that enforcement of those controls could have slowed or halted production across entire industries, particularly hitting the automotive sector. The agreement buys the U.S. a little time-a year's worth-to get a handle on rare-earth minerals."
"A crisis years in the making Georgetown Law scholar Peter Harrell, a former senior White House and State Department official who advised both the Trump and Biden administrations on supply-chain security, said the vulnerabilities were well understood inside Washington long before the current flare-up. "This is not a new problem," he said in an interview with Fortune. For a lot of policymakers, Harrell added, the first time the gap began to register was in 2011, when China cut off rare-earth exports to Japan"
The United States relies heavily on China for rare-earth metals that power military systems, electric vehicles, and consumer electronics. Planned Chinese export controls threatened global production by requiring licences even for trace amounts of China-origin rare-earths, risking major disruption in sectors like automotive. A recent agreement between U.S. and Chinese leaders temporarily delays those controls for about a year, providing breathing room to address supply risks. Decades of underinvestment and risk tolerance left the U.S. exposed. Historical events, such as China cutting exports to Japan in 2011, demonstrate how trade measures can be weaponized and spur rapid responses.
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