English 
Spanish 
3 min read
0 comments
China and its control of the global market: Beijing dictates the rules on exports and prices of rare earth mining and promises to further strangle the US and other Western countries
China is already a superpower in the field of rare earth mining, and a new find further tightens its grip. The West, for its part, faces an uphill struggle to compete, hampered by stringent environmental regulations and China’s vast experience.
“While the Middle East has oil, China has rare earths.” This statement by Deng Xiaoping, who led China from 1978 to 1989, still rings true. Rare earths have become vital in the XNUMXst century, being essential for industries such as electric vehicles, technology, aerospace and others involving lasers and astronomical instruments.
Although rare earths are found in many parts of the world, China holds a leading position, not only in volume but also in its extraction and processing capacity. Now, this control is expanding even further with the discovery of a new source in Sichuan province.
- Furnas could become a gigantic underground gold and copper deposit to generate jobs and change the entire economy
- Brazil becomes a global target: Valuable rare earth elements found in Minas Gerais
- Brazil 'surprises' by selling a huge deposit of Niobium and rare earths for more than R$100 MILLION to an Australian mining company in Araxá, Minas Gerais!
- Brazil reacts to US interference in Gripen fighter jet purchase and surprises with new plans for presidential and military aircraft
China accelerates its leadership in rare earth mining
The elements that make up rare earths are not usually found in their pure form in nature, requiring complex extraction processes to obtain metals such as neodymium, promethium, scandium and gadolinium, which are essential to many modern industries. In 2021, three of China’s largest rare earth mining and production companies merged to create the China Rare Earth Group, further cementing China’s dominance.
In recent months, the country has increased its extraction quotas by 5,9% and smelting quotas by 4,2% compared to the previous year, totaling 270 and 254 tons, respectively.
Hidden riches in poor lands
China’s expertise in processing rare earths is complemented by less stringent environmental legislation compared to the West, allowing the country to remain a market leader. In addition, China has vast reserves of these materials. The latest addition to these reserves is the discovery of 4,96 million tons of rare earths in Sichuan province, more specifically in the Liangshan region, one of the poorest areas in China.
This new deposit is considered a strategic resource for the country's technological advancement, which includes sectors such as electric vehicles, wind turbines, robotics and even weapons.
Washington on alert: Geopolitical implications
During a recent conference, the China Rare Earth Group stressed that “in the face of new international competition, the focus will be on ensuring the security of China’s rare earth resources,” revealing the geopolitical importance of these discoveries. Chinese protectionism has been intensifying, with clear examples such as electric vehicle technology that has conquered the global market.
Meanwhile, Washington is on alert, and the West, aware of its dependence on Chinese rare earths, is looking for new sources and ways to process these materials. Some alternatives include regions such as Greenland and Norway, as well as Japan's efforts to reduce its dependence.
An unbeatable control of the global market: China dictates the rules on exports and prices of Rare Earths
While the West is making progress in diminishing Chinese hegemony, the Asian giant continues to discover new rare earth deposits, such as the one in Sichuan, further cementing its dominance. China controls the market to the point that when prices rise, it gathers its major manufacturers to adjust and balance the market.
Despite efforts by other countries, China still dictates the rules. In the 2010s, it controlled between 80% and 90% of global rare earth production. By 2023, that percentage had fallen to 70%, according to the U.S. Geological Survey, but Chinese influence remains decisive in regulating exports and prices.
