The Intelligence from The Economist The great brawl: China is winning the trade war
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Oct 24, 2025 
In this discussion, Simon Rabinovich, Beijing bureau chief for The Economist, delves into China's strategic leverage in the trade arena, highlighting its rare-earth export controls and their impact on global markets. He reveals how China's manufacturing dominance translates into geopolitical power. Tom Wainwright, Media editor at The Economist, explores the unexpected screen habits of older adults, showcasing how their screen time often surpasses that of the young, while discussing both the benefits and health concerns linked to digital engagement in later life.
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China Closed The Preparations Gap
- China has prepared since 2018 to reduce vulnerabilities and now closes the gap in semiconductors while building domestic capacity.
- That preparation and investment moved China closer to the global chip frontier and strengthened its bargaining position.
Rare Earths Are China's Strategic Lever
- China dominates rare-earth processing and controls about 90% of sophisticated production, especially heavy rare earths.
- Its recent export controls on rare earths and magnets can choke supply chains for tech and defence globally.
Short-Term Negotiation, Long-Term Alternatives
- Washington responded angrily but pragmatically by returning to talks and seeking alternatives like a $3bn Australian partnership.
- Building independent rare-earth supply chains will take years, so negotiations remain urgent.