On February 10, Chinese Premier Li Qiang inspected rare earth producers and related research facilities in Jiangxi province.
The visit took place as part of traditional activities ahead of the Lunar New Year, however, according to China Daily, it also reflects Beijing’s growing focus on strategic industrial development. Rare earth elements are critical to high-tech industries, and China’s dominance in their processing gives it a significant strategic advantage in competition with the United States.
The Chinese premier also commented on the issue, stating:
“The role of rare earths in advancing high-end manufacturing and promoting green, low-carbon transformation is becoming increasingly prominent,” Li Qiang said.
According to Reuters, the issue gained particular relevance after China tightened controls on rare earth exports from April 2025 and shifted to an individual licensing regime, which requires prior approval and authorization by the state for each export.
This move prolonged supply procedures and reduced their efficiency, resulting in some companies being unable to fully meet contractual obligations, with a significant impact on the functioning of global supply chains.
At the same time, the geopolitical situation is also changing in Washington. Last week, U.S. Vice President JD Vance presented an initiative aimed at coordinating allied countries’ extraction, processing, and trade of critical minerals. The initiative also envisions the formation of a preferential trade bloc, under which member states would have priority access to each other’s markets.
The plan aims to reduce dependence on Chinese resources. However, it remains at a conceptual stage, as the participating countries, institutional format, and relevant legal and economic mechanisms have yet to be defined.
Author: Mariam Simsive
