During Scott Bessent’s confirmation hearing for US Treasury Secretary before the Senate Finance Committee, significant concerns were raised regarding China’s dominance in the rare earth elements (REEs) market.

The Committee underscored that China controls approximately 70 percent of global rare earth mining and nearly 90 percent of refining capacity, a near-monopoly that grants Beijing substantial influence over these critical materials. This dominance poses severe risks to US national security, economic stability, and technological independence, given that REEs are essential for industrial, technological, and military applications.

The hearing emphasized that rare earth elements are crucial for advanced defence systems, including missile guidance, jet engines, satellite communications, and space technology. Any disruption in supply from China could cripple US military readiness and weaken its technological superiority.

Beyond defence, rare earth metals and other industrial minerals such as cobalt, lithium, and nickel are essential for semiconductors, batteries, electric vehicles (EVs), and clean energy infrastructure.

Senators cautioned that China’s control over these resources grants it significant leverage over the global transition to clean energy, potentially undermining US and allied economies.

Committee members cited past instances, such as China’s restriction of rare earth exports to Japan in 2010 during a diplomatic dispute as evidence that Beijing is willing to weaponise its resource monopoly for geopolitical and economic advantage.

The Committee expressed concerns that China could employ similar tactics against the US, exacerbating supply chain vulnerabilities. Senator Catherine Cortez Masto further highlighted that China’s rare........

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