China Controls Over 90% Rare Earth Refining, Secures Global Supply Dominance

China maintains a near-monopoly over rare earth elements, crucial minerals used in high-tech industries, green energy, and defense, giving it significant leverage in global trade and geopolitical negotiations. President Donald Trump recently announced an agreement with China to secure the U.S. supply of rare earths and permanent magnets, part of a broader framework to ease trade tensions, including tariff reductions and relaxed restrictions on Chinese students in the U.S. Despite these developments, Western leaders remain wary, accusing China of "weaponizing" its dominance in critical raw materials, with the G7 pushing for a critical minerals action plan to reduce dependency. Historically, the U.S. once led rare earth production, but now 96% of supply comes from China, which responded to U.S. tariffs by restricting exports, impacting global manufacturing and defense sectors. The rare earth issue is central to ongoing U.S.-China trade talks, with China’s export controls viewed as a powerful bargaining chip that could shape the broader geopolitical rivalry. This dependency on China for rare earth minerals is reshaping U.S. foreign policy and global power dynamics, underscoring the strategic importance of these materials for technological and defense innovation.