Are China’s rare earths really a potent weapon?

[MILAN] Early 2025, China’s government introduced an export-licensing regime requiring exporters to obtain approval before shipping heavy rare-earth elements and permanent magnets, over which China has a near-monopoly, to foreign firms.

China relaxed these export restrictions later in the year, after US President Donald Trump agreed to reduce tariffs and export restrictions.

For many observers, the message seemed clear: China’s rare-earths dominance amounts to a powerful source of geopolitical leverage, and the US and Europe must do everything in their power to erode it.