China pulled off what may be the most consequential act of economic coercion in recent years - cutting off the United States from rare-earth metals essential to cars, weapons and electronics, and forcing Washington to back down on trade demands.
Beijing exploited its dominance across the entire rare-earth supply chain to checkmate its rival, "Hvylya" reports, citing a Wall Street Journal analysis. China controls 60% of global rare-earth mining, 91% of refining and 94% of sintered magnet production, according to the International Energy Agency.
The cutoff forced American factories to idle, leaving Washington with little choice but to soften its demands. Edward Fishman, director of the Center for Geoeconomic Studies at the Council on Foreign Relations, called it "the most effective use of economic warfare we have seen in recent years."
The episode has accelerated U.S. efforts to close the gap. Last month, Trump announced Project Vault, a $12 billion government-backed fund to stockpile critical minerals for industrial emergencies. Washington also struck a preliminary deal with Australian miner Lynas to secure scarce "heavy" rare earths - a segment China dominates almost entirely.
Morgan Bazilian, director of the Payne Institute at the Colorado School of Mines, said Washington's newfound political focus on minerals has reduced its exposure to Chinese leverage - but cautioned that the gains remain fragile. Rebuilding munition inventories amid conflicts in Ukraine and the Middle East, he warned, will only increase pressure on demand for certain minerals.
With many U.S.-backed mining projects still years from production, China retains the ability to cause fresh disruptions if relations deteriorate further.
Previously: Americans Grow Resigned to China's Rise as Elite Hawks Lose Public Support.