Highlights

• China continues to dominate rare earth mineral production and export, controlling licensing and strategic supply chains.
• Current geopolitical negotiations have failed to resolve critical mineral access issues between the U.S. and China.
• Multilateral industrial policy is essential for Western nations to effectively counter China's integrated rare earth strategy.

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Despite high-level meetings in Beijing, the U.S.–China rare earths dispute remains unresolved. Representative Adam Smith, leading the first U.S. House delegation to China since 2019, admitted, “I don’t think we resolved the rare earth question.” This admission underscores a persistent geopolitical stalemate: Washington demands a reliable supply while Beijing maintains leverage through export approvals and policy opacity.

The Facts That Hold

China remains the dominant supplier of rare earths and magnets, and while U.S. Trade Representative Jamieson Greer noted exports to America have “bounced back significantly,” the underlying structure has not changed, as cited in a Cryptopolitan piece (opens in a new tab).  Beijing still controls licensing, while European buyers complain of shortages. The report correctly highlights how these supply inconsistencies reverberate through advanced manufacturing and defense supply chains.

The Framing That Falls Short

The coverage threads rare earths alongside TikTok negotiations, Boeing orders, and fentanyl talks, but in doing so, risks trivializing the centrality of critical minerals. Bundling the issue with consumer tech and aircraft purchases softens the stark truth: rare earths are a national security linchpin. This framing also leans heavily on official quotes, presenting the lack of progress as a neutral outcome when, in fact, it signals China’s confidence in retaining strategic dominance.

Speculation and Blind Spots

The article suggests that Trump and Xi may meet in South Korea next month, indicating that the dispute could be resolved at the leader level. That may be true, but history shows summitry rarely alters China’s long-term industrial strategy. Missing from the analysis is recognition that export “reviews” are less about technical oversight than a tool of geopolitical statecraft. Suggesting otherwise risks obscuring Beijing’s deliberate use of rare earths as leverage.

Why It Matters for Investors

For supply chain stakeholders, the unresolved status is more telling than any temporary export bump. Beijing’s willingness to link rare earths to unrelated trade disputes—whether TikTok or Boeing—illustrates the fragility of Western access. The lack of progress keeps volatility high and financing costly for non-Chinese projects.

REEx View: The Vital Missing Key

The absolute prerequisite for countering China’s dominance is a true multilateral industrial policy across the West. Isolated national incentives, whether from Washington, Brussels, Canberra, or Tokyo, remain too fragmented to dent Beijing’s integrated mine-to-magnet strategy. Only coordinated investment, shared processing hubs, and a collective offtake framework will give the West a credible counterweight. Without it, China will continue to dictate the rhythm of global rare earth supply.

Citation: Hannah Collymore, Cryptopolitan, September 23, 2025.

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