Economist Podcasts The great brawl: China is winning the trade war
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Oct 24, 2025 
Simon Rabinovich, Beijing bureau chief at The Economist, discusses how China's rare-earth export controls have shifted the trade war's dynamics in its favor. He explains China's strategic investments in semiconductors and dominance in processing rare-earth elements, affecting global supply chains. Meanwhile, Tom Wainwright highlights the rising screen time among seniors, weighing the risks against potential social and cognitive benefits. Lastly, Henrietta McFarlane dives into the cultural significance and modern revival of the waltz, showcasing its lasting appeal in Vienna.
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China Has Turned Preparation Into Leverage
- China has prepared and closed gaps since 2018, moving closer to the semiconductor frontier through heavy domestic investment.
- It leverages rare-earth dominance to gain geopolitical and economic leverage over the US and other countries.
Rare Earths Are China's Choke Point
- China controls about 90% of global rare-earth processing, especially heavy rare earths vital for high-tech and munitions.
- Its export controls on rare earths can significantly disrupt industrial processes in the US and beyond.
Build Alternatives While Negotiating
- Diversify supply chains by partnering internationally to build alternative rare-earth capacity, as the US did with Australia.
- Expect these projects to take years, so pursue negotiations in the short term to reduce immediate vulnerability.