- By Raju Kumar
- Thu, 12 Feb 2026 08:20 PM (IST)
- Source:JND
After oil, if something that took a central stage in the Trump administration's foreign policy is rare earth metals, as it plays a key role in the technology-driven economy. US President Donald Trump has taken a series of decisions to curb the emerging power of Russia and China. However, China has not remained silent. Beijing has stepped up efforts to consolidate its monopoly over rare earth metals to counter the United States move. China's dominance of global mining and processing of the minerals has become a crucial strategic advantage in recent years, giving it vital leverage when sparring with the US over a string of trade and technology disputes.
Chinese Premier Li Qiang, last week, visited Ganzhou in Jiangxi province. He called for China to consolidate its lead in industries like rare earths, over which it has a strategic edge over Washington.
Ganzhou is one of the world's largest production bases for heavy rare earth elements, a strategic resource essential to a range of hi-tech industries. His visit comes in the backdrop of intensified efforts by the US to form an international alliance after China increased its chokehold on its exports of rare earth metals to the US, EU, India and various other countries, creating supply chain chaos of the precious metals.
US Making Bloc Of Rare Earth Metals Producers To Counter China
The Trump administration formed an international alliance with over 50 nations, including India, to secure the supply chains of the precious metals to reduce reliance on Beijing.
He also visited the Chinese Academy of Sciences' Ganjiang Innovation Academy. During his tour, he met critical mineral producers, local business leaders and researchers.
Why All Focus On Rare Earth Metals
The value of rare earths in boosting advanced manufacturing and green, low-carbon transformation is increasingly prominent, Li said during his crucial visit. The minerals are critical for manufacturing electronics, automobiles, wind energy, and defence equipment and a host of modern gadgets. China accounts for about 70 per cent of global rare earth mining and nearly 90 per cent of their processing.
Why Has China Restricted Exports?
Beijing halted the exports of the key elements to use them as leverage to expand its trade interests. China used its chokehold on rare earth exports to force Trump to cut high tariffs and settle for a quid pro quo deal under which Beijing had agreed to resume rare-earth supplies to Washington, lifting the ban on exports of semiconductor chips.
China also restricted the exports of the rare-earth metals to India, resulting in shortages in automobile and other industries.
After this, the Trump administration, early this month, launched a major initiative to build a "metallic alliance"Â with over 50 nations, including India, to secure critical mineral supply chains and reduce reliance on China.
(With PTI inputs)