Controlling the means of production

Rare leverage

This week has been full of bluster coming from Washington, D.C., and justified concern around the world about China’s new export control rules on rare earths, which are key to global manufacturing of cars, electronics, and military hardware.

China’s rare earths leverage appears to be driving the Trump administration to distraction. U.S. Treasury Secretary Scott Bessent called China’s senior negotiator Lǐ Chénggāng 李成钢 “unhinged,” and suggested without evidence that he may have “gone rogue.” Trump threatened a bajillion percent tariffs (OK, the number was 100%) but then softened—again—and talked—again—about meeting Xi Jinping and making a deal.

Which the U.S. is going to have to do: There is no short-term alternative supplier for rare earths. Other countries such as Australia could make up some of the shortfall, and the U.S. will now re-start its dormant rare earths mining and refinin…

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