China Leverages Rare Earth Control For Strategic Power, Supply Dominance Turns Minerals Into A Geopolitical Tool

China Leverages Rare Earth Control For Strategic Power, Supply Dominance Turns Minerals Into A Geopolitical Tool

China has turned rare earth dominance into a geopolitical weapon by controlling materials vital for modern defence and technology. Through long-term industrial policy, subsidies, and export controls, it creates supply uncertainty and strategic leverage, leaving Western nations highly dependent with few immediate alternatives.

Manoj YadavUpdated: Wednesday, January 07, 2026, 05:26 PM IST
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Rare earths emerge as a strategic weapon. |

Mumbai: China’s control over rare earth elements has become a powerful tool of modern geopolitics, giving it strong leverage over Western nations that depend on these materials for defence, clean energy, and advanced manufacturing. An article published by Discovery Alert explains that rare earth dominance today shapes global power in ways traditional resources never did.

Unlike oil or coal, rare earths are not just fuels for economies. They are essential for precision weapons, electronic warfare systems, and high-tech military equipment that define modern warfare.

Why rare earths are critical for defence?

Rare earth elements include 17 materials with unique magnetic, optical, and chemical properties. These properties cannot be easily replaced or recreated. This makes many defence systems completely dependent on them.

For example, neodymium and dysprosium are crucial for powerful magnets used in precision-guided missiles. Europium and terbium are key for night-vision devices and targeting screens. Yttrium is used in lasers and military communication systems. Together, these materials support almost every modern defence platform.

Military equipment also demands extreme reliability. Fighter jets must function in freezing Arctic conditions as well as intense engine heat. Submarine sonar systems must perform under massive ocean pressure. Rare earth materials meet these strict standards, leaving no easy alternatives.

How China built its dominance?

China’s dominance did not come simply from having more natural resources. Instead, it was built over decades through planned industrial policies. China accepted environmental damage from mining and processing that Western countries were unwilling to tolerate.

The government also supported companies with subsidies, allowing them to run rare earth processing plants at losses. This forced competitors in other countries to shut down, leaving China as the main global processor of these materials.

Control through uncertainty and paperwork

China’s rare earth strategy works through many layers of control. Export licensing systems rarely block supplies directly but often delay approvals indefinitely. This creates uncertainty for foreign companies and discourages investment in alternative supply chains.

The process also demands detailed information about how materials will be used. This gives China insights into defence programmes and industrial plans abroad, turning trade procedures into intelligence tools.

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