#US must disconnect strategic supply chains from #China, say experts
China’s dominance over the supply of rare-earth minerals and other materials—which are critical for energy transition and defense technologies—should spur U.S. policymakers to bolster raw materials supply chains, according to a new report from Rice University’s Baker Institute for Public Policy.
The China Rare Earth Group, a merger of three of China’s state-owned enterprises into one mega-conglomerate, controls of up to a quarter of global mineral-bearing rare-earth elements (REE). Combined with China’s overall dominance in rare-earth minerals and materials—roughly 60% of world production—the merger grants Chinese central planners significant pricing power and influence over world supply, explain co-authors Michelle Michot Foss and Jacob Koelsch.
The authors argue that the U.S. and its allies must divorce strategic industries from Chinese REE.