Economics

Blame U.S. Regulations for China's Dominance in Rare-Earth Minerals

America once dominated the rare-earth market, but permitting requirements are holding the industry back.

Eric Boehm | From the April 2026 issue

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During a tempestuous moment in the ongoing trade war between the world's two biggest economies, the Chinese government last October threatened to exercise its most potent economic leverage by ending exports of rare-earth minerals.

The bold move got results. The Trump administration, which had earlier threatened tariffs as high as 130 percent on Chinese goods, agreed to cut tariffs and ease tech export restrictions from the U.S. to China. In exchange, China said it would hold off on limiting rare-earth exports for at least a year.

The incident—and the ongoing threat embedded in its resolution—highlighted China's strategic control over rare earths,........

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