A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China.
China Stringer Network | Reuters
In April 2025, China imposed stringent export controls on seven rare earth elements and the vital magnets derived from them, significantly affecting industries that underpin our economy and national defense. Fighter jets, electric vehicles, and cutting-edge technology rely on these materials. This aggressive move shows that the Chinese Communist Party can manipulate global supply chains at will, exposing our dangerous dependence on a rival state.
For over 15 years, U.S. policymakers—spanning both parties—have ignored the warning signs about our critical mineral supply chains. The time for urgent action is long overdue. Weak leadership and diplomatic hand-wringing have left us vulnerable to China’s economic machinations, threatening not just commercial interests but our very sovereignty.
The recent agreement allowing China to resume approving export licenses has brought little clarity or reassurance. It raises critical questions regarding U.S. concessions and whether any binding commitments were secured. Our leaders seem more focused on temporary fixes rather than long-term solutions aimed at true independence.
Take Ford’s recent production halt in Chicago due to a magnet shortage as an example; even minor disruptions reveal the devastating impact of reliance on foreign powers. Hollow agreements will not restore our supply chain integrity. A lack of transparency only invites further uncertainty and inefficiency.
Moreover, many U.S. companies describe China’s export licensing process as invasive and burdensome. Instead of fostering innovation and growth, it effectively amounts to competitive surveillance, where the Chinese regime extracts sensitive information under the guise of regulation. This situation underscores a systemic failure to protect our domestic industries from foreign exploitations.
America’s complacency regarding its critical minerals supply chain has persisted for too long. Previous administrations recognized the issue but always chose to delay decisive action. The Trump administration took steps to identify rare earths as critical but fell short by exempting them from tariffs, highlighting a misguided dependency. Biden has made attempts to address the problem through executive orders and partnerships; nevertheless, progress remains tepid and hampered by bureaucratic delays.
Turning the Tide
Even the more aggressive measures taken recently still fail to dismantle China’s dominance. The recent G7 summit revealed that our allies share concerns about Beijing’s monopolistic practices, yet the results remain non-committal at best. The push for a united front against China’s predatory practices must be both vocal and actionable.
With China responsible for approximately 70% of global rare earth mining and more than 90% of refining capacity, this power imbalance is a result of strategic planning and investment on their part. Conversely, America’s hesitance and mismanagement have put us at a severe disadvantage. We are floundering in the face of their decisiveness because we lack a clear, unified vision for a resilient supply chain.
Instead of uniting their efforts to ensure national security, American policymakers have chosen approaches that are scattershot and reactionary. This indecision continues to allow foreign nations to leverage their resources, turning critical minerals into geopolitical pawns. Our nation must view these resources not merely as commodities but as tools of international power.
The Mountain Pass Rare Earth Mine & Processing Facility, owned by MP Materials, in Mountain Pass, California.
George Rose | Getty Images News | Getty Images
U.S. efforts in Africa and Latin America have been reactionary and limited. Initiatives focusing on governance rather than concrete strategic partnerships have fallen woefully short. Meanwhile, China continues to engage and dominate these markets, investing in their influence and infrastructure.
While the recent trade agreements buy us some time, this time must not be wasted. With Congress now contemplating rescinding critical energy policies, the alarming potential for further delays looms large. America’s internal divisions will only serve to embolden China, who will watch to see if we can overcome our challenges.
The upcoming months will serve as a litmus test for our resolve to counteract Beijing’s influence. If we do not act with purpose, the costs will be great. We must realize that we are at a critical juncture; we require not just reactionary measures, but a coherent, long-term strategy that prioritizes independence from foreign control.
A Call for Action
We cannot afford to treat critical minerals as secondary concerns. They must be incorporated into the fabric of our national strategy. A comprehensive plan should encompass domestic production, strengthened partnerships with friends, and a steadfast commitment to reliable supply chains.
The reprieve offered by China is not a solution; it is a challenge. It reveals whether America will finally shed its complacency or fall back into indifference. The clock is ticking, and the stakes could not be higher. Our leadership must emerge united and resolute, ready to take actionable steps to secure our future.
—By Dewardric McNeal, Managing Director and Senior Policy Analyst at Longview Global, and a CNBC Contributor
