China’s control over rare earth supply chains gives President Xi Jinping
significant economic leverage ahead of a planned summit with US President Donald
Trump in Beijing next month, according to Bloomberg Economics. The analysis
estimates around 4% of US GDP, or roughly $1.2 trillion, is tied to industries
reliant on rare earth inputs, many of which lack viable substitutes. Bloomberg
Economics said some materials act as “golden screws,” where disruption could
force production stoppages or lengthy adjustments. The summit, now scheduled for
May 14–15, was delayed from March due to the Iran conflict.
