How times have changed. A few short years ago, Germany shied away from any mention of business in connection with geopolitics. Now, the country, which heavily depends on raw materials from China, has set up a fund for raw materials that will help German firms process and recycle raw materials. It promises to make German industry less vulnerable to supply chain disruptions, especially from hostile states—and it may even do its part for the environment.

Like most modern economies, Germany relies on imports of rare metals, and that means a lot of imports from China. Between January and November 2022, about 66 percent of Germany’s rare earth imports came from China, Germany’s Federal Statistical Office reported. In the case of the frequently used rare earths lanthanum, neodymium, praseodymium, and samarium, 75 percent of Germany’s imports came from China, and with scandium and yttrium, the figure reached nearly 95 percent. “We’re more dependent on rare earths from China than we ever were on Russian gas,” said Matthias Wachter, head of defense, space, and raw materials at the Federation of German Industry (BDI).

How times have changed. A few short years ago, Germany shied away from any mention of business in connection with geopolitics. Now, the country, which heavily depends on raw materials from China, has set up a fund for raw materials that will help German firms process and recycle raw materials. It promises to make German industry less vulnerable to supply chain disruptions, especially from hostile states—and it may even do its part for the environment.

Like most modern economies, Germany relies on imports of rare metals, and that means a lot of imports from China. Between January and November 2022, about 66 percent of Germany’s rare earth imports came from China, Germany’s Federal Statistical Office reported. In the case of the frequently used rare earths lanthanum, neodymium, praseodymium, and samarium, 75 percent of Germany’s imports came from China, and with scandium and yttrium, the figure reached nearly 95 percent. “We’re more dependent on rare earths from China than we ever were on Russian gas,” said Matthias Wachter, head of defense, space, and raw materials at the Federation of German Industry (BDI).

In the globalized world built over the past few decades, such imports were no big........

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