The Inside Story Podcast What can Trump do to break Beijing's monopoly?
Oct 29, 2025
In a riveting discussion, Brian Wong, Assistant Professor of Philosophy at the University of Hong Kong, explores the crucial role of rare earth minerals in modern technology and why China dominates their supply. Gracelyn Baskaran, a mining economist, outlines the national security motivations behind the U.S. desire for rare earth deals. Henry Huiyao Wang, head of the Center for China and Globalization, argues for cooperation over conflict in resource politics. They dive into the geopolitical implications and the challenges of diversifying supply chains.
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Rare Earths Are Critical And Geopolitically Charged
- Rare earths power everything from smartphones to wind turbines and EVs, making them vital for the green transition.
- China controls ~70% of mining and ~90% of processing, giving it outsized geopolitical leverage.
Rare Earths Are A National Security Asset
- Critical minerals underpin national security because virtually all modern defense technologies need rare earths.
- Reliance on a single supplier leaves countries vulnerable to being 'held hostage' in negotiations.
Why China Built A Processing Lead
- China's lead arose from heavy investment from the 1980s, economies of scale, lax local environmental enforcement, and large STEM output.
- Those structural advantages are costly and slow for other countries to replicate.