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China’s Rare Earths Strategy: Why It’s Hard to Imitate

Source: Explainer: Why is China’s rare earths ‘model’ not easy to break or replicate (2025-11-22)

China’s dominance in rare earth elements (REEs) remains largely unchallenged, thanks to a complex blend of strategic policies, integrated supply chains, and technological investments. This model, often lauded as a blueprint for resource control, is difficult for other nations to replicate due to several intertwined factors. Recent developments highlight China’s unwavering commitment to maintaining its lead, including substantial investments in mining, refining, and processing infrastructure, as well as strict export controls that safeguard its resource advantages. Moreover, China’s integrated approach—spanning from resource extraction to high-tech manufacturing—creates a resilient ecosystem that is hard to dismantle or duplicate. Beyond the original insights, recent facts underscore the evolving landscape of rare earths. For instance, China controls approximately 60% of global rare earth production and over 80% of refining capacity, giving it unmatched leverage in global markets. The United States and the European Union are actively investing billions into developing alternative supply chains, but these efforts face significant hurdles due to China’s entrenched infrastructure and technological edge. Additionally, new discoveries of rare earth deposits in countries like Australia, Greenland, and India are unlikely to match China’s scale and processing capabilities for years to come. The geopolitical implications are profound, as rare earths are critical for manufacturing advanced electronics, renewable energy technologies, and military equipment, making China’s model a strategic asset beyond mere resource control. Furthermore, China’s environmental policies, while often criticized, are integrated into its resource management, allowing for more sustainable and efficient extraction processes that other nations struggle to implement at scale. The global push for greener technologies also increases demand for rare earths, intensifying competition but also highlighting China’s current dominance. As the world seeks to diversify supply chains, the challenge remains: replicating China’s comprehensive, state-supported ecosystem is a formidable task that involves not just resource extraction but also technological innovation, infrastructure development, and geopolitical stability. In conclusion, China’s rare earths model exemplifies a sophisticated, multi-layered approach that combines strategic resource management, technological prowess, and geopolitical influence. While other countries are making strides to develop their own supply chains, the complexity and scale of China’s integrated system make it a resilient and difficult-to-imitate paradigm. As global demand for rare earths surges, understanding the nuances of China’s approach is crucial for policymakers, industry leaders, and environmental advocates aiming to navigate the future of critical mineral supply chains.

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