China's Chemicals Industry Expands to 45% of Global Capacity, Deepening Rare Earth Processing Advantage

Highlights

• China's chemical industry expanded eighteenfold in 25 years, now controlling over 45% of global basic chemicals and plastic-resin capacity.
• Rare earth solvent extraction depends on specialty reagents like P507 and D2EHPA—China's integrated chemical sector gives domestic refiners a structural cost advantage.
• Western rare earth independence requires competitive chemical inputs and proven separation technology, not just access to mineral feedstock.
• Strategic subsidies may need to support entire processing ecosystems rather than individual mines to counter China's industrial leverage.