U.S. vs China: The Battle for Rare Earths and Global Tech Supremacy

Business News:The ongoing tussle between the US and China on the world stage has now become a war of resources rather than trade. The sheen of the temporary trade deal in Geneva is fading, and ‘rare earth’ has now become the biggest pawn in the global game.

When the representatives of the US and China agreed on a 90-day temporary trade deal in Geneva, the world heaved a sigh of relief. It seemed that a superpower war had been averted. But a silent move by China has dashed this hope. Now the issue is not just about tariffs, but technology, weapons, and global power balance—and at the center of this is ‘rare earth minerals’.

‘Rare Earth’: Earth’s invisible treasure

Rare Earth Elements (REEs) are minerals that are not visible but the technological backbone of the entire world rests on them. Be it the iPhone’s microchip, Tesla’s battery or America’s F-35 fighter jet—the existence of all these depends on these elements. And 80% of these come from just one country—China.

On April 4, Beijing imposed strict export controls on the export of REEs. This move was not part of any sudden decision, but was the next move in the strategic chess game, which the US is now trying to read.

Betrayal of the deal or strategy? China's new game

Under the Geneva deal, China had promised to reduce tariffs against the US and agreed to remove non-tariff barriers. But US trade representatives say that the 'rare earth' ban is against that promise.

Analysts believe that China is deliberately working on its long-term strategic agenda by using the temporary deal as a shield. The US seems to be caught in this trap, where it is reacting late to China's moves at every step.

New world of 'resource pressure' instead of diplomacy

China is no longer speaking the traditional language of diplomacy. It is now communicating in the language of "pressure through resources," which is neither audible nor easy to respond to.

Gracelyn Bhaskaran, an expert on critical minerals security, believes that China's export licensing is not only a means of control, but it also determines which countries can touch its strategic assets.

The future of technology in China's hands?

Control over the global supply of rare earths means control over the technology of the future. As fast as America wants to stop China economically, it is lagging behind in the strategic supply of these resources.

If America does not take action on this front, it may lose its status as a technological superpower in the coming years. This battle is no longer a battle of trade; it is a battle for technological survival and global dominance.

The trade war has now become a mental war

This strategy of China makes it clear that the global conflict of the 21st century will not be fought only in arms or tariffs. It will be fought around resources, supply chains and the invisible power that drives our technology. And China is currently leading the game.