China's Rare Earth Grip: US-China Trade Talks in London Highlight Global Supply Chain Risks

US-China Trade Talks in London: Rare Earths Take Center Stage The US and China initiated trade talks in London on June 9th, 2025, focusing on several key issues, most notably the global supply chain of rare earth minerals. China's dominance in the mining and refining of these essential materials has created a significant bottleneck for various industries, particularly the automotive sector. The talks aim to address concerns about China's export restrictions and ensure a more stable and reliable supply of rare earths for global manufacturers. The video highlights the impact of China's control over rare earth elements. "China controls about 60% of global mining and over 90% of refined output," the narrator explains. This dominance has led to concerns about supply chain security and vulnerabilities for countries heavily reliant on these materials. Automakers such as BMW, Mercedes, and Volkswagen have been severely impacted, with some even halting production lines due to shortages. Adding to the complexity, China recently announced a "green channel" to expedite export permit approvals for General Motors, Ford, and Stellantis, but notably excluded Tesla. This decision has raised questions about potential political motivations behind the move. Furthermore, China's exports to the US have dropped by 34% year-over-year, the sharpest fall in five years. However, China has offset this loss with increased exports to South Asia, Europe, and Africa, resulting in an overall 4.8% increase in exports. The ongoing trade talks represent a critical juncture in addressing global supply chain vulnerabilities and ensuring a more balanced distribution of rare earth resources. The outcome of these negotiations will have far-reaching consequences for the global economy and various industries.