Asia Global Institute

Rare earths are China’s Trump card

Thursday, August 7, 2025

Rare earths are China’s Trump card

Angela Zhang, AGI Senior Fellow, argues in Project Syndicate that China's dominance in rare earths gives it a significant advantage, limiting US options in trade negotiations.

Despite diversification efforts, the US remains heavily reliant on China's refining capacity and expertise. Zhang suggests that instead of decoupling, the US should leverage technologies China needs to maintain influence. The article emphasizes that China’s strength lies in its industrial capacity to refine, process, and produce at scale – a dominance built over time and not easily eroded.

Read the full article here.

Author

Angela Zhang

Senior Fellow, Asia Global Institute

Angela Zhang

ASIA GLOBAL INSTITUTE

Room 326-348, Main Building
The University of Hong Kong
Pokfulam, Hong Kong

© 2026 Asia Global Institute
All rights reserved.