China's dominance in Rare Earth Elements

China's dominance in rare earth elements stems from its control over both mining and, more significantly, the processing and refining stages, giving it a near-monopoly over the supply chain. This position is the result of decades of state-led investment, lower environmental standards, and cheaper labour, allowing China to control approximately 70% of global rare earth mining and 90-92% of processing. China's dominance extends to the manufacturing of rare earth-based magnets, a crucial component for modern technologies, leaving many strategic sectors vulnerable to potential supply disruptions.