China vs the World: US Seeks India’s Support for Rare Earth Supply Chains

A New Chapter in the Global Crisis: China's growing hold on the world's most important resources—rare earth minerals—has escalated global tensions. US Treasury Secretary Scott Bessant has described it as a "China vs. the World" war and appealed for support from India and European countries. According to US Geological Survey (USGS) data, 70% of US rare earth imports come from China. China recently imposed stricter regulations on the export of these minerals, including tariffs on US ships. This move is a response to Washington's export restrictions, which directly target US military technology.

China's Dominance: Control of 90% of Refining 

China not only controls 60% of global mining but also controls 90% of refining. According to the US Department of Defense, these minerals are essential for F-35 fighter jets, Virginia- and Columbia-class submarines, Predator drones, Tomahawk missiles, advanced radar, and precision-guided bomb systems. Experts say these sanctions could cripple the US defense industry and give Chinese President Xi Jinping an edge in trade negotiations with Trump. "It's China versus the world. We won't let that happen. China is a command-and-control economy. We will assert our sovereignty in different ways," Bessant said in an interview with Fox News.

US Strategy: Alliances with Allies, 'America First' Agenda

The US is emphasizing supply chain diversification to reduce its dependence. Bessant said they will meet with allies this week and will not tolerate export restrictions. Global support is expected from European countries, India, and Asian democracies. President Trump has postponed 100% tariffs on Chinese goods until November 1st to ease tensions. "The US is striving for peace in the world, while China is funding war," Bessant added. The US is focusing on domestically producing critical minerals, semiconductors, and pharmaceuticals.

India's Role: Reserves available, but challenges remain

The US views India as a strong ally against China but is creating a conflict by imposing a 50% tariff. India has 7.23 million tons of rare earth oxide reserves in monazite, spread across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. However, lagging mining and refining has prevented it from capitalizing on these reserves. India has launched the National Critical Mineral Stockpile (NCMS) scheme, with an allocation of ₹5 billion (₹5 billion). This scheme will ensure supplies for clean energy, defense, and high-tech manufacturing. "We expect support from India and European countries," Bessant said.

Trade Contradictions and Future Challenges

Analysts have criticized US policy—imposing tariffs on India while now appealing for solidarity. Bessant dismissed this, saying, "We don't want isolation; we want to mitigate risk." This conflict could impact US security, the global economy, and trade negotiations. If left unresolved, supply chain disruptions will increase. This is an opportunity for India, but processing capacity will need to be increased. Overall, this "China vs. the world" battle over rare earths is creating new geopolitical turmoil.