China deploys rare earths as economic weapon– www.americanthinker.com

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As U.S. tariffs tighten the screws on China’s export machine, Beijing is striking back with strategic precision. Export restrictions on rare earths are now Beijing’s latest move to break down European trade barriers and push back against escalating pressure from Washington.

In today’s global trade standoff, the gloves are off. The U.S. is wielding its market clout — 25% of global consumption originates from the American domestic market. Anyone in the export business must deal with the United States. China, meanwhile, holds an current monopoly on rare earths — and is making it clear it will not hesitate to weaponize that dominance. The stakes are rising, and national interests now override globalist courtesies.

Europe is learning the hard way: in geopolitics, there are no friends, only temporary alliances. China’s tightened export controls on rare earth elements risk plunging Germany’s industrial sector into a severe resource crisis. With nearly 85% of global rare earth refining under its control, Beijing is the chief supplier of key metals like dysprosium, terbium, and yttrium — critical for electric motors, medical tech, and defense systems.

Since April 2025, access to these raw materials has been restricted to licensed exporters only — a de facto embargo. The fallout is immediate: several German manufacturers have already been forced to scale back operations. Others face complete shutdowns. Industrial metal prices continue climbing, and the fragility of global supply chains is now exposed in brutal detail. Europe’s resource dependency is becoming a major liability — and a strategic weakness in the coming trade war negotiations.