Highlights
- U.S. and China engaging in strategic supply chain conflict targeting technology exports and critical mineral access
- Current U.S. industrial capacity in rare earth processing and strategic materials remains critically underdeveloped.
- Rebuilding domestic industrial capabilities will require hundreds of billions of dollars and multiple years of investment.
A piece in today’s New York Times (opens in a new tab) (NYT) by Ana Swanson (opens in a new tab) rightly identifies the heart of today’s U.S.–China economic standoff: not tariffs, but strategic supply chain warfare. As the U.S. cuts off technology exports and China clamps down on rare earth minerals and critical inputs, the fragile interdependence of global manufacturing is unraveling.
Ms. Swanson gets several key points right. She highlights the bipolar choke points—U.S. aerospace tech versus Chinese rare earths—while detailing Beijing’s use of export licensing and slow-walking of shipments since April. The piece also warns, accurately, that efforts to rebuild U.S. capacity in rare earths and other strategic materials will take years, and according to the NYT estimate, hundreds of billions of dollars.
However, what the NYT fails to confront fully is the depth of U.S. industrial decline. While it mentions long mine development timelines and notes the DoD is “accelerating efforts,” it does not name a single viable U.S.-based rare earth processor or magnet producer. Nor does it analyze whether current investments—public or private—come remotely close to replacing Chinese supply on a large scale. There is also little scrutiny of the Biden, Trump (or now Trump-Kennedy) policy inconsistencies that contributed to this vulnerability across multiple administrations.
Also missing: any mention of how deeply China is embedded not just in raw mineral processing, but in midstream value chains—magnet production, battery precursor chemicals, and alloy engineering—areas where the U.S. has almost no capacity today. Does the piece question why past federal efforts, such as the 2020 Defense Production Act awards, largely stalled or failed to create commercial resilience? There is not much critical thought infused into the piece for the retail investor.
From a retail investor standpoint, the NYT piece lacks actionable insight. It omits any discussion of which U.S., Canadian, Australian, or allied companies are rising to meet the challenge, or how volatile mineral markets are reshaping capital flows into the sector.
REEx View
The New York Times successfully diagnoses the new terrain of trade conflict but glosses over the scale of the problem and the inadequacy of the current U.S. response. Investors should read this as confirmation of the centrality of rare earths to geopolitics, but not mistake it for a roadmap. The gap between strategic rhetoric and industrial reality remains dangerously wide.
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