Rare earth extraction in China accounts for approximately 60% of global production of these strategic minerals. In addition, the Asian country processes nearly 90% of global rare earths and manufactures around 94% of magnets based on these elements, which are critical inputs for technology industries and advanced supply chains.
Chinese dominance in critical minerals and trade policy
China’s control over rare earths is part of a long-term industrial strategy linked to trade policy and access to critical minerals. According to an analysis by the House of Representatives, the country has developed a coordinated plan over decades to consolidate its position in mining, refining, and processing.
This approach is based on the geostrategic vision of mineral resources promoted by Deng Xiaoping, who in 1992 stated: “There is oil in the Middle East, there are rare earths in China.” Since then, control of these resources has been integrated into the country’s industrial and technological strategy.
Export control regime
On October 9, 2025, the Chinese Ministry of Commerce established a comprehensive export licensing regime for rare earth items. This measure is part of a broader system of control over the critical minerals value chain, promoted by the government headed by Xi Jinping.
According to the US Congress analysis, Chinese dominance has been supported by industrial subsidies, price distortion, supply restrictions, and limitations on international competition. These policies have strengthened the country’s position in the mining and refining of these strategic resources.
Technological restrictions and controls on strategic minerals
China’s industrial policy has intensified in recent years. In 2023, the government banned the export of rare earth processing and refining technologies. Subsequently, in 2025, it announced export controls on several key elements for the technology and energy industries.
These include samarium (Sm), gadolinium (Gd), terbium (Tb), dysprosium (Dy), lutetium (Lu), scandium (Sc), and yttrium (Y), materials used in permanent magnets, advanced electronics, and energy technologies.
Global production of rare earths
In 2025, the largest rare earth mining production was recorded in China, with 270,000 tons of rare earth oxide equivalent (REO). It was followed by the United States with 51,000 tons from mines in California and Georgia, Australia with 29,000 tons, and Myanmar with 22,000 tons.
Global reserves of critical minerals
The largest estimated reserves are also concentrated in China, with 44 million tons. Brazil ranks second with 21 million tons, followed by Australia with 6.3 million, Russia with 3.8 million, Vietnam with 3.5 million, the United States with 1.9 million, and Greenland with 1.5 million tons.
Dependence on imports and supply chains
In the international trade of these strategic minerals, the United States depended on net imports for 67% of most rare earths in 2025. The main suppliers were China, Malaysia, Estonia, and Japan.
The country also depended on net imports of scandium from Japan and China for 100% of its supply, and on yttrium imported from China, Germany, Austria, and South Korea for 100% of its supply.
This scenario raises strategic questions for global supply chains, particularly regarding security of supply, diversification of suppliers, and the impact of trade policy on critical minerals.